UPDATED 22:17 EDT / JULY 19 2018

EMERGING TECH

Uber signs deal with Cargo to upsell customers in-car convenience products

Uber Technologies Inc. drivers are now going to upsell their riders on snacks and other in-car convenience goods after the company signed a deal with Cargo Systems Inc.

The contract, which will eventually see Uber drivers flogging snacks, beverages, electronics and beauty products initially in San Francisco and Los Angeles but eventually across the country.

“Rideshare drivers turn to Cargo as a way to provide a premium in-car experience to passengers while uncovering new earnings opportunities through the commissions, referrals and performance bonuses they can receive from Cargo,” Uber said in a statement.

New York City-based Cargo, a startup founded in 2016, pitches itself as an in-car service that allows rideshare passengers to order products on their phone without downloading an app. It apparently has been used by Uber and Lyft Inc. drivers but so far on an ad-hoc basis. The deal with Uber is the first time it has had official endorsement.

The Cargo system involves drivers having a free center-console box that is filled with goods that riders can order via an app on their phone. Emphasizing safety, Uber drivers then provide the ordered product “when it’s safe to do so.”

“Through partnerships with major brands like Kellogg’s, Starbucks and Mars Wrigley Confectionery, Cargo lets drivers offer riders both free samples and items for purchase,” Uber said separately on Medium. “In fact, one million items have already been distributed with Cargo.”

Cargo itself is also available in New York City, Boston, Minneapolis, Washington D.C., Baltimore, Atlanta and Dallas, although it’s up to individual ride-hailing drivers to sign up to the service. The Uber tie-up doesn’t include purchases via the Uber app, although that may change with time. Or if it’s highly successful, Uber may decide to acquire the company at some point down the track.

The company has raised $8.7 million in funding, according to Crunchbase from investors that include CRCM Ventures, Eighteen94 Capital, TechStars Ventures, RiverPark Ventures, Fontinalis Partners, Detroit Venture Partners and Rosecliff Ventures.

Photo: Uber

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