Cargo provides qualified ridesharing drivers with free boxes stocked with convenience-store items and a mobile web menu so riders can purchase goods on-trip without an app. The company has partnered with brands including Kellogg’s, Starbucks and Mars Wrigley Confectionery and has launched integrations with Uber and an international licensing deal with Grab. Cargo has activated more than 12,000 drivers across 10 cities; riders have ordered over two million products and transact with the service every five seconds. To date the company has raised $30 million in venture funding. Cargo says it will use new capital to scale in the U.S. and internationally and to develop new digital services and on-trip experiences for riders. Strategic investments from gaming and entertainment executives are intended to help build those digital offerings. Cargo provides drivers with a hardware and software solution that turns rideshare cars into mini convenience stores for snacks, drinks and essentials. The startup also runs sponsored free-sample campaigns with CPG brands (Kellogg, Mars Wrigley, Red Bull) that serve as a marketing and distribution channel and generate anonymous usage data for those brands. About 30% of paid transactions follow a rider trying a sponsored free item. Drivers earn a 25% commission on paid orders plus a $1 base commission per order; the average driver earns roughly $100–$115 per month while the top 10% make up to $275 and convert 30–60% of riders. Revenue is split roughly 50/50 between direct product sales to riders and distribution deals with manufacturers. The company plans to deploy its solution in about 20,000 cars and expand into one new city per month for the next six months before pursuing a Series A to scale toward 100,000 cars and beyond. Cargo provides drivers with a custom center‑console display stocked with snacks and essentials and a unique URL/code that lets passengers browse and pay via credit card or mobile wallets like Apple Pay. After a passenger purchases an item the driver is notified and hands the item to the rider; Cargo tracks sales and automatically sends replenishment when inventory runs low. Drivers sign up for free and are paid $0.50 per item distributed; some items are provided free to riders but still generate payment to Cargo and drivers from brands. The company reports that the top 30% of drivers sell about 500 items per month and the majority make at least $100 per month on average. Cargo works with brands to distribute samples and capture transaction demographics (time, location) for marketing insights. The service is operating in New York, Chicago and Boston and has received driver requests from 49 states; Jeff Cripe is co‑founder and CEO.

Total raised

$29M

Funding rounds

3

Latest round

Series A

Latest activity

Sep 2018