The in-car service has so far partnered with major companies like Kellogg, Mars Wrigley Confectionery as well as RXBAR. Cargo believes it is also a platform for emerging brands to “amplify their rapid growth and capitalize on their viral status in the consumer market”.
Cargo said these partnerships align with the Millennial-led snacking trend, as a recent Mintel study indicated that a quarter of Millennials snack four or more times a day.
“Millennials are redefining snacking convenience, and it’s crucial for our products to be more readily available and accessible,” Andrea Borton, associate director of snacks innovation and strategy at Kellogg, said in a statement.
“Offering people the chance to enjoy sweet and savory snacks like Cheez-It, Pringles and Rice Krispies Treats, while they’re on-the-go allows us to satisfy their evolved snacking habits,” she added.
Mars Wrigley said it is Cargo’s “exclusive confectionery partner.” The company’s director of business development, Jayesh Shah, said: “As a business rooted in Chicago, Mars Wrigley Confectionery is excited to be part of bringing this enhanced rideshare experience to riders in the city.”
“We’ve already seen tangible results – Extra gum was the number one requested product during Cargo’s first few weeks,” he said.
A Cargo spokesperson told ConfectioneryNews that the pricing of all retail items is consistent with the mass market, and the company’s revenue mostly comes from partnerships with these brands.
Cargo said its service, which is free to set up, could help drivers earn an extra of $130 to $350 per month. “Pre-backed boxes and replenishments are shipped directly to drivers’ homes, and earnings are directly deposited into their bank accounts,” the startup said.
Passengers need to log in Cargo menu’s website on their mobile phones and enter the unique four-digit code on the driver’s Cargo box. Then they will have the option to pay with Apple Pay, Android Pay, Paypal or scan their credit card, according to Cargo.
“The driver receives a text notification of the order and hands products to the passengers at a safe time during or at the end of the ride,” the company added.
Cargo’s inventory management system also tracks all drivers’ orders and automatically ships products to ensure that vehicles are always fully stocked, Cargo said.