Next time you are traveling in an Uber and you suddenly realize that you forgot to pick up a small essential item, chancers are that your Uber driver will provide you with these things while on the go. Yes, you heard it right. Your Uber ride can become a mobile convenient store.
Startup company, Cargo, is trying to help customers save time by picking up adding these kinds of essential items to Uber rides. Cargo has signed up with ride-hailing company and recently raised $7 million to deploy in-car product boxes.
Speaking in an interview with Forbes, Jeff Cripe, CEO of Cargo stated, “Cargo is essentially an in-car commerce platform. It’s arm’s length convenience.”
The product box consists of items ranging from snacks such as Pringles and chocolate bars to tech essentials such as iPhone chargers. The box also will have free snack items for passengers. Cripe further commented, “Everybody wants to tell you they are so healthy, but sweet and salty snacks do really, really well.”
At the moment, Cargo’s drivers are operating in major cities across the United States. However, the company does have plans to expand to other cities. In fact, it has already signed up drivers across 50 states in the U.S.
Cripe stated, “We will have twice as many stores in North America as 7-Eleven.” Cargo provides these drivers with an in-car payment system and the box of products at no cost. Moreover, Cargo will also deliver top-ups to items that are running low, again absolutely free. Drivers are going to be paid on a commission model, with 25 percent commission on all retail sales and an additional $1 on every order, even if the passenger has grabbed a freebie item.
This certainly looks like a strong business model that has leveraged the growing ride-sharing industry. This also comes with the fact that the company gets data on drivers and passengers and the time and location where the products were sold.
Cargo’s marketing mantra is to help drivers earn extra money while they are on the road. According to the company, the average Uber driver can earn around $100-$115 on a monthly basis by selling snacks and other items.
Not sure about expansion in other countries, but next time you get into an Uber ride, don’t be surprised if the driver offers you snacks.