
Cargo raises $5.5M to let Uber drivers sell snacks and essentials nationwide - tonyztan
https://techcrunch.com/2018/01/22/cargo-raises-5-5m-to-let-uber-drivers-sell-snacks-and-essentials-nationwide/
======
SwellJoe
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_
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
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.

------
getpost
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?

~~~
VVyattPrentice
ProTip: at ARCO gas stations, the top right button mutes the ad.

~~~
UncleEntity
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.

------
IntronExon
_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
The figures in those sentences are the revenue earned from selling snacks
through Cargo, not revenue from the drive itself.

~~~
IntronExon
[http://exchange.aaa.com/wp-
content/uploads/2016/04/2016-YDC-...](http://exchange.aaa.com/wp-
content/uploads/2016/04/2016-YDC-Brochure.pdf)

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.

------
Animats
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.

~~~
oldcynic
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.

~~~
tdeck
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.

~~~
SwellJoe
It's because ads are "free" money. They make money for/from things that people
don't want to or can't pay for.

I'm definitely not saying it's a good thing. I lost all patience for it years
ago, but I get how it happens. It makes a sad sort of sense. Don't want to
properly fund schools because it means you pay an extra point on your taxes?
OK, let's sell the kids' attention to the highest bidder. Let's put some junk
food vending machines in the halls while we're at it. (Or, more realistically
in most states where school budgets are tied to local tax revenue: Rich
districts get an ad-free and well-funded education experience, while poor
districts have to pursue every possible avenue to raise funds.)

I wish I knew how to turn it around. Nobody _likes_ it, as far as I know. But,
nobody seems to be doing much about it.

------
Theodores
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?

~~~
exhilaration
What about an automated vending machine, maybe built into front seat(s)?

~~~
Theodores
With a Black Cab there is a partition between the driver and the back seats,
complete with a hole to pass your money and all important tip. This will do
for the upsells, it just needs a bar code reader to then add it on to the tab.

Actually just a mobile phone charger in the back of a Black Cab would be
progress.

------
ACow_Adonis
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

------
aestetix
Oh I get it! It's Bodega for Uber!

[https://www.bodega.ai/](https://www.bodega.ai/)

------
bagacrap
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.

