Cargo Raises $5.5 Million, Implements Convenience Store Concept for Rideshare Drivers

The US start-up Cargo –famous for providing carpooling drivers with shopping services– announces a 5.5 million dollars round table with CRCM Ventures and eighteen94 capital (Kellogg’s venture arm). They designed a solution for passengers, enabling them to pay for goods during their ride.

This company provides Uber and Lyft drivers with the possibility to change their vehicle into a small convenience store. This new concept lets them propose snacks and basic necessities to their passengers.

Customers would access a Web page and key in the code specified on the car’s rear window. There, they can check the menu and choose the items they want to buy. They may then pay by card or through their preferred mobile app (Apple Pay, Google Pay, etc.).

This start-up also proposes free samples and claims that 30% of the transactions they recorded are completed once the products have actually been tested. In exchange for this service, Cargo sends buying habits-related data (time and date of the transactions, for instance) to partner brands (Mars Wrigley, Red Bull, etc.) so they can scale their offers accordingly.

Comments – Carpooling as a new sales channel

Ever since connected cars have hit the market, they have become way more than just a means of transportation: places where drivers and passengers can pay for various services. The IoT has unlocked a market for selling products in cars, making it a reality. Connectivity and on-board payment projects seem to be gaining momentum, which accounts for the increasing number of partnerships and buyouts in this sector.

While waiting for this business to expand, other players are allowing drivers and passengers to pay for goods on-the-go from their phone: Cargo is one of them. They are now transforming the passenger’s seat into small convenience stores, by way of enhancing the customer’s experience.

This service should also assist drivers (who may not always easily make ends meet) in increasing their profit: one dollar +25% for every transaction.