A new startup that expanded to Chicago this week pledges to help ride-share drivers earn more money and give passengers access to a variety of goods they might need or want while en route.
New York-based Cargo works directly with ride-share workers—not their employers, like Uber or Lyft—to provide them with boxes of goods to keep in their car. When a passenger hitches a ride from a Cargo-equipped driver, they can browse the box for what they want and pay for it on their smartphone through Cargo’s website.
Cargo boxes vary, but they generally include snacks, phone chargers and beauty products, said Sabina Rahaman, the director of brand partnerships and merchandising at Cargo. Boxes include free items and those passengers have to purchase. Each box can hold up to 14 items.
“We are a company that wants to serve drivers in the ride-share industry,” Rahaman said. “There’s an opportunity, not only to work with drivers to help them create a more premium experience for passengers by providing goods, products and services, but more importantly, we see an opportunity to work with drivers to help them earn more money.”
According to Cargo, drivers can earn $130 to $350 per month by partnering with the service. The company monitors drivers’ inventory, and when they’re running low on items, Cargo automatically ships replacements their homes.
Drivers don't have to pay to partner with Cargo and get paid about 50 cents for each item they sell, whether it's free, $1 or $8.
Cargo also operates in Boston, and the company plans to eventually expand to even more cities. Company representatives couldn’t give exact member numbers on users, but said driver sign-ups have grown more than 100 percent month-over-month since its launch. And just last week, the company hired former Uber executive Kenny Liao to serve as Cargo’s Head of Driver Supply Growth and Operations.
Cargo’s model is in many ways introducing new methods for companies to market their products, Rahaman said. Rather than spend money on an Internet ad or other, more traditional forms of advertising, companies can put their items in a car with a passenger, who has to stare at it for the duration of their ride.
“It’s giving brands a new way to reach consumers in cars,” she said. “It’s been a space that was really hard to get into and now we’re formalizing it and carving it out.”
As part of their expansion to Chicago, Cargo partnered with Mars Wrigley Confectionery and RXBAR protein bars, both headquartered in Chicago.
Cargo currently employs eight people in its New York offices and has raised $1.75 million from venture capital firms, such as Detroit Venture Partners and Boulder, Colo.-based Techstars Ventures.
