4 ms·

Cargo raises $5.5M to let Uber drivers sell snacks and essentials nationwide

28 points by tonyztan 9y ago

aestetix 9y ago
Oh I get it! It's Bodega for Uber! https://www.bodega.ai/ https://www.bodega.ai/
SwellJoe 9y ago
The whiff of MLM around the ride-share industry grows stronger by the day. I've talked to Uber/Lyft drivers who basically consider driving itself close to unsustainable (the pay just isn't very good) if they aren't also getting bonuses for others signing up with their code, which explains the mass of sites and YouTube channels that talk about Uber/Lyft and pitch signing up as a driver. Cargo seems kind of like an MLM scheme in the style of Amway or Mary Kay, and with a captive audience. So, pretty brilliant, but also pretty shady. That's not to say it's a terrible thing; drivers deserve to make a living, too, and I guess it'll add a few bucks to their monthly revenue. But, at some point it's kinda ridiculous. And, I don't want to take a ride where I'm being pitched on snacks and "essentials". Every human interaction really shouldn't be viewed as a marketing opportunity. But, I guess we get the world we deserve and are willing to pay for (I don't know what the better alternatives would look like in terms of transit).
- andrei_says_ 9y ago
  Unfortunately this will not help drivers make a living. It will make them work more and squeeze another level of profit through another level of exploitation. Also, I’d be curious about user testing this first. How many people enter a ride in a dire need for something? Thirdly, why can’t drivers sell things themselves and take 100% of the profit?
  - SwellJoe 9y ago
    I suspect it's to allow easy payment, just like Lyft/Uber take away the payment problem. But, also maybe to give it some legitimacy, and make it seem like a "real" business rather than a flea market in a car...we Americans do like our big box stores and don't always love our mom and pop shops. I'm surprised it's not against the Uber/Lyft terms of service for drivers, and probably will be soon, if it makes money for Cargo. An obvious optimization of this model is making it so the price of any snacks or "essentials" you buy on your ride is just added to the cost of your ride. So, if I were an investor in Cargo, I'd be asking, "What are you going to do when (not if, again if this is profitable) Uber/Lyft start selling products during rides?" I've seen some drivers pitching their own businesses (i.e. mentions they're a DJ, or house painter, or handyman, or whatever, in casual conversation and has their card handy), but I've never seen one selling stuff directly in the car. I've heard some drivers give away stuff like water and what not, but I've never been in one of those cars. Maybe because I never take the fancy luxury Uber/Lyft services.
Animats 9y ago
Candy and snacks - that's obvious, but low rent. The real win would be to have drivers pitch job opportunities. Use the driver's payment information to get their background, and if they're in a high-demand area, get them in touch with a recruiter. Uber/Lyft drivers in convention cities are the primary targets for this. Have a setup so the recruiter can pitch them by video while in the car.
- sincerely 9y ago
  I can hardly imagine anything less appealing from the rider's perspective
- oldcynic 9y ago
  Suddenly the whole Uber prospect starts to sound like a dystopia I want no further part of and I'll take a cab or the bus! "Would you like a snack or beverage?" "No thanks" "sure? We have Red Bull, Coke, choc bars, chewing gum" "Like I said, no thanks" "We have a special discount on Coke today" "still no" "OK. I see from your Uber account you're a software developer, that's great!" "We have a short presentation that's just perfect for you!" (Do they lock the doors, time-share style, until you've watched all of it?). "Hi Uber passenger, ABC Recruiting have a great job opportunity for you.... " (pitch continues) "...press button below to go straight to in-car interview!" Just no.
  - andrei_says_ 9y ago
    Uber is already dystopia by the measure of its villainry. It blows my mind that women still use it in the presence of competition, and that it hasn’t been shut down for its blatant disregard for laws, privacy and human decency. And that drivers still drive for Uber.
  - tdeck 9y ago
    Last time I took a cab in NYC there was non-stop video advertising that I couldn't turn off. At what point will we as a society start to realize it's a miserable existence being advertised at around every turn, and start to set limits? In many states, even public schools run ads in the hallways.
getpost 9y ago
Start with a simple idea, and rather than work to keep it simple, parasitic add-ons! Look at gas stations. It used to be they sold gas, and maybe oil. But evidently there's no money in gas, so now they all sell unhealthful snacks and bottled water (itself an environmental disaster, which this kind of retail establishment has fostered). And there's not enough money in that, so now there's video advertising at every pump. Buying gas has become extremely unpleasant. Plus, distracting everyone all the time has ruined our what little social cohesion we had. Now drivers are going to be asking you if you want any snacks. Because, research will show, if you ask TWICE, customers are 12% more likely to buy. Uber already has a parasitic burden which needs to be shed; namely, the idea that the only way to succeed is by being a criminal enterprise. Parasitism is a deep property of ecosystems, so I guess we just can't have simple services and products that work, but it sure would be nice. Is there no better way to compete?
- lathiat 9y ago
  Not sure if this will be better or worse with 20-40 minute electric charge times :)
  - toomuchtodo 9y ago
    There’s a reason Wawa gas stations are partnering with Tesla for SuperCharger installs on their properties.
- VVyattPrentice 9y ago
  ProTip: at ARCO gas stations, the top right button mutes the ad.
  - UncleEntity 9y ago
    I go to ARCO pretty much daily and it rarely has the volume on when the pump starts. They also seem to be more about 'news' than advertising though I hardly ever pay attention to the thing since I can't hear it. I do get 'the word of the day' a lot (that I promptly forget) which I guess is educating the motoring public.
ACow_Adonis 9y ago
Sort of tangentially, it would be tragically hilarious if public self-driving or car-sharing car eco-systems won't succeed because of the ever encroaching advertising/salesman. You know you're onto something when you're making private car ownership appealing to a public transport advocate. /no one mention the dystopia where i can't block out ads, pitches and sales from my own private vehicle/house :P
Theodores 9y ago
I took a London Black Cab recently and thought I would have a driver that would know the postcard sites and not demand a postcode to be typed into Google Maps on his phone. Since I was by now in a picky mood about the customer service aspect, I did wonder why this driver had no 'upsells'. So what 'upsells' would you have for the passenger in the back of a cab? Well, you can be on a trip to a meeting in posh clothes. Just having a mirror to see if you look the part could be most helpful in a cab, obviously a full length mirror isn't going to happen but something to check the spinach in your teeth might help. So there is a whole set of breath fresheners, mints, chewing gums and whatever else people need to get the spinach out of their teeth. Also, where can I get a latte in the back of a cab? Okay, maybe that is not going to happen, but a bottle of water can't be that hard to stock and keep chilled. What price an umbrella when you arrive with no coat expecting better weather? Then there are those that have not had breakfast yet. Cereal bars have shelf life, how much are they worth to late, starving people? A small pack of tissues, costs pennies but if you are late for that interview and need to blow your nose, would you pay £1 for those tissues? Cigarette lighters, maybe not booze and fags, but there is a whole cornucopia of every day stuff that the drunk crowd would want. I imagine there are good reasons why cab drivers do not offer these sorts of upsells (everything can be bought en-route), however, why do you need the products to be sponsored by brands and many millions of dollars of VC to sell a few candy bars and a few combs?
- UncleEntity 9y ago
  > Also, where can I get a latte in the back of a cab? Here in 'merica there's a starbucks drive thru on virtually every corner... I often wonder (mostly when I see whatever new building is going up is yet another starbucks) how they don't manage to oversaturate the market but they always seem to be busy.
- cylinder 9y ago
  I think what you're looking for is a limousine.
- exhilaration 9y ago
  What about an automated vending machine, maybe built into front seat(s)?
IntronExon 9y ago
Drivers get a 25 percent commission on each paid order plus a $1 base commission for each order (including free products), with the average driver earning around $100-$115 per month. However the top 10 percent of drivers are converting somewhere between 30-60 percent of riders into customers and making up to $275 per month. Wow. Given how mileage degrades a vehicle’s value, and leads to necessary service and repair, I would guess that Uber is a net loss for the driver. Now though, a cool $100-$275 per month? How insultingly bad is this gig economy? You can literally make more flipping burgers, or begging on a busy street corner.
- cbowal 9y ago
  The figures in those sentences are the revenue earned from selling snacks through Cargo, not revenue from the drive itself.
  - IntronExon 9y ago
    http://exchange.aaa.com/wp-content/uploads/2016/04/2016-YDC-Brochure.pdf http://exchange.aaa.com/wp-content/uploads/2016/04/2016-YDC-... How much does an Uber driver make per mile? How much potentially productive time do they spend not earning, cleaning and otherwise trying to keep their rating up? https://www.ridester.com/how-much-do-uber-drivers-make/amp/ https://www.ridester.com/how-much-do-uber-drivers-make/amp/ Goddamn that’s not good. I’ll say it again, you can earn orders of magnitude more by begging. I don’t recommend that, but I don’t recommend Uber either.
deleted 9y ago
[deleted]
bagacrap 9y ago
Why is the crowd here so negative on this? If you don't want these things, don't buy them. If you really need a tissue, you're probably glad to avoid an extra trip to the store. Seems like this whole thing just makes life slightly more efficient by filling empty time and space.
- draw_down 9y ago
  God, stop it.

28 points by tonyztan 9y ago

Oh I get it! It's Bodega for Uber! https://www.bodega.ai/ https://www.bodega.ai/

The whiff of MLM around the ride-share industry grows stronger by the day. I've talked to Uber/Lyft drivers who basically consider driving itself close to unsustainable (the pay just isn't very good) if they aren't also getting bonuses for others signing up with their code, which explains the mass of sites and YouTube channels that talk about Uber/Lyft and pitch signing up as a driver. Cargo seems kind of like an MLM scheme in the style of Amway or Mary Kay, and with a captive audience. So, pretty brilliant, but also pretty shady. That's not to say it's a terrible thing; drivers deserve to make a living, too, and I guess it'll add a few bucks to their monthly revenue. But, at some point it's kinda ridiculous. And, I don't want to take a ride where I'm being pitched on snacks and "essentials". Every human interaction really shouldn't be viewed as a marketing opportunity. But, I guess we get the world we deserve and are willing to pay for (I don't know what the better alternatives would look like in terms of transit).

andrei_says_ 9y ago
Unfortunately this will not help drivers make a living. It will make them work more and squeeze another level of profit through another level of exploitation. Also, I’d be curious about user testing this first. How many people enter a ride in a dire need for something? Thirdly, why can’t drivers sell things themselves and take 100% of the profit?
- SwellJoe 9y ago
  I suspect it's to allow easy payment, just like Lyft/Uber take away the payment problem. But, also maybe to give it some legitimacy, and make it seem like a "real" business rather than a flea market in a car...we Americans do like our big box stores and don't always love our mom and pop shops. I'm surprised it's not against the Uber/Lyft terms of service for drivers, and probably will be soon, if it makes money for Cargo. An obvious optimization of this model is making it so the price of any snacks or "essentials" you buy on your ride is just added to the cost of your ride. So, if I were an investor in Cargo, I'd be asking, "What are you going to do when (not if, again if this is profitable) Uber/Lyft start selling products during rides?" I've seen some drivers pitching their own businesses (i.e. mentions they're a DJ, or house painter, or handyman, or whatever, in casual conversation and has their card handy), but I've never seen one selling stuff directly in the car. I've heard some drivers give away stuff like water and what not, but I've never been in one of those cars. Maybe because I never take the fancy luxury Uber/Lyft services.

Animats 9y ago

Candy and snacks - that's obvious, but low rent. The real win would be to have drivers pitch job opportunities. Use the driver's payment information to get their background, and if they're in a high-demand area, get them in touch with a recruiter. Uber/Lyft drivers in convention cities are the primary targets for this. Have a setup so the recruiter can pitch them by video while in the car.

sincerely 9y ago
I can hardly imagine anything less appealing from the rider's perspective
oldcynic 9y ago
Suddenly the whole Uber prospect starts to sound like a dystopia I want no further part of and I'll take a cab or the bus! "Would you like a snack or beverage?" "No thanks" "sure? We have Red Bull, Coke, choc bars, chewing gum" "Like I said, no thanks" "We have a special discount on Coke today" "still no" "OK. I see from your Uber account you're a software developer, that's great!" "We have a short presentation that's just perfect for you!" (Do they lock the doors, time-share style, until you've watched all of it?). "Hi Uber passenger, ABC Recruiting have a great job opportunity for you.... " (pitch continues) "...press button below to go straight to in-car interview!" Just no.
- andrei_says_ 9y ago
  Uber is already dystopia by the measure of its villainry. It blows my mind that women still use it in the presence of competition, and that it hasn’t been shut down for its blatant disregard for laws, privacy and human decency. And that drivers still drive for Uber.
- tdeck 9y ago
  Last time I took a cab in NYC there was non-stop video advertising that I couldn't turn off. At what point will we as a society start to realize it's a miserable existence being advertised at around every turn, and start to set limits? In many states, even public schools run ads in the hallways.

getpost 9y ago

Start with a simple idea, and rather than work to keep it simple, parasitic add-ons! Look at gas stations. It used to be they sold gas, and maybe oil. But evidently there's no money in gas, so now they all sell unhealthful snacks and bottled water (itself an environmental disaster, which this kind of retail establishment has fostered). And there's not enough money in that, so now there's video advertising at every pump. Buying gas has become extremely unpleasant. Plus, distracting everyone all the time has ruined our what little social cohesion we had. Now drivers are going to be asking you if you want any snacks. Because, research will show, if you ask TWICE, customers are 12% more likely to buy. Uber already has a parasitic burden which needs to be shed; namely, the idea that the only way to succeed is by being a criminal enterprise. Parasitism is a deep property of ecosystems, so I guess we just can't have simple services and products that work, but it sure would be nice. Is there no better way to compete?

lathiat 9y ago
Not sure if this will be better or worse with 20-40 minute electric charge times :)
- toomuchtodo 9y ago
  There’s a reason Wawa gas stations are partnering with Tesla for SuperCharger installs on their properties.
VVyattPrentice 9y ago
ProTip: at ARCO gas stations, the top right button mutes the ad.
- UncleEntity 9y ago
  I go to ARCO pretty much daily and it rarely has the volume on when the pump starts. They also seem to be more about 'news' than advertising though I hardly ever pay attention to the thing since I can't hear it. I do get 'the word of the day' a lot (that I promptly forget) which I guess is educating the motoring public.

ACow_Adonis 9y ago

Sort of tangentially, it would be tragically hilarious if public self-driving or car-sharing car eco-systems won't succeed because of the ever encroaching advertising/salesman. You know you're onto something when you're making private car ownership appealing to a public transport advocate. /no one mention the dystopia where i can't block out ads, pitches and sales from my own private vehicle/house :P

Theodores 9y ago

I took a London Black Cab recently and thought I would have a driver that would know the postcard sites and not demand a postcode to be typed into Google Maps on his phone. Since I was by now in a picky mood about the customer service aspect, I did wonder why this driver had no 'upsells'. So what 'upsells' would you have for the passenger in the back of a cab? Well, you can be on a trip to a meeting in posh clothes. Just having a mirror to see if you look the part could be most helpful in a cab, obviously a full length mirror isn't going to happen but something to check the spinach in your teeth might help. So there is a whole set of breath fresheners, mints, chewing gums and whatever else people need to get the spinach out of their teeth. Also, where can I get a latte in the back of a cab? Okay, maybe that is not going to happen, but a bottle of water can't be that hard to stock and keep chilled. What price an umbrella when you arrive with no coat expecting better weather? Then there are those that have not had breakfast yet. Cereal bars have shelf life, how much are they worth to late, starving people? A small pack of tissues, costs pennies but if you are late for that interview and need to blow your nose, would you pay £1 for those tissues? Cigarette lighters, maybe not booze and fags, but there is a whole cornucopia of every day stuff that the drunk crowd would want. I imagine there are good reasons why cab drivers do not offer these sorts of upsells (everything can be bought en-route), however, why do you need the products to be sponsored by brands and many millions of dollars of VC to sell a few candy bars and a few combs?

UncleEntity 9y ago
> Also, where can I get a latte in the back of a cab? Here in 'merica there's a starbucks drive thru on virtually every corner... I often wonder (mostly when I see whatever new building is going up is yet another starbucks) how they don't manage to oversaturate the market but they always seem to be busy.
cylinder 9y ago
I think what you're looking for is a limousine.
exhilaration 9y ago
What about an automated vending machine, maybe built into front seat(s)?

IntronExon 9y ago

Drivers get a 25 percent commission on each paid order plus a $1 base commission for each order (including free products), with the average driver earning around $100-$115 per month. However the top 10 percent of drivers are converting somewhere between 30-60 percent of riders into customers and making up to $275 per month. Wow. Given how mileage degrades a vehicle’s value, and leads to necessary service and repair, I would guess that Uber is a net loss for the driver. Now though, a cool $100-$275 per month? How insultingly bad is this gig economy? You can literally make more flipping burgers, or begging on a busy street corner.

cbowal 9y ago
The figures in those sentences are the revenue earned from selling snacks through Cargo, not revenue from the drive itself.
- IntronExon 9y ago
  http://exchange.aaa.com/wp-content/uploads/2016/04/2016-YDC-Brochure.pdf http://exchange.aaa.com/wp-content/uploads/2016/04/2016-YDC-... How much does an Uber driver make per mile? How much potentially productive time do they spend not earning, cleaning and otherwise trying to keep their rating up? https://www.ridester.com/how-much-do-uber-drivers-make/amp/ https://www.ridester.com/how-much-do-uber-drivers-make/amp/ Goddamn that’s not good. I’ll say it again, you can earn orders of magnitude more by begging. I don’t recommend that, but I don’t recommend Uber either.

deleted 9y ago

[deleted]

bagacrap 9y ago

Why is the crowd here so negative on this? If you don't want these things, don't buy them. If you really need a tissue, you're probably glad to avoid an extra trip to the store. Seems like this whole thing just makes life slightly more efficient by filling empty time and space.

draw_down 9y ago
God, stop it.