Cargo is a new startup, which has a pretty simple idea. And that is to bring snacks to your next Uber or Lyft ride. The startup just raised $55 million in funding this week, which brings its total funding to around $7.3 million. One of the investors in Cargo include eighteen94 capital, which is the investment arm fo Kellogg Company.
The way that Cargo works, is it ships a Cargo box filled with items to interested Uber and Lyft drivers. The items can include snacks, pain killers and even earbuds or charging cables. In order for a rider to pick out something to buy, they would need to input the box's ID code on Cargo's website and then they can check out from their smartphone. Cargo says that things like a charging cable would cost a few bucks. While others might be giveaways from brands, which are paying Cargo to distribute their products. Which would be a good form of advertising for some newer companies that want to get their brand out there.
When it comes to drivers, they will get a 25% commission on all of the retail sales, along with $1 per order, and that includes those that pick out the freebies. Additionally, riders are able to tip their driver through the Cargo website. And since Cargo will know what has been sold and in what quantity, the company is able to automatically send refills to the driver before their supply runs low. Making it really easy for Uber and Lyft drivers to make some extra coin. Cargo says that the average driver could make an extra $100/month with Cargo. But some are making $300 or more per month. This is of course in busier cities, since Cargo is only available in New York City and Boston as of right now.
Cargo is a pretty neat way for drivers to earn some extra cash, without really doing much more work. Since Uber and Lyft already pay their drivers pretty little, drivers definitely wouldn't mind making some extra cash. And since riders are typically hungry or have the munchies when sitting in traffic, it's a good way to keep riders happy.