Cargo Lands A Hefty New Load of Cash
We’ve been hearing quite a bit out of Cargo lately, the company that lets consumers order a few extra useful goodies on their ridesharing trips. Now, new word from the company says that Cargo’s taking on a little extra cargo of its own in the form of a recently-concluded Seed Preferred financing round that saw the company come out $5.5 million ahead.
Featuring investments from such firms as Kellogg Company’s venture capital arm eighteen94 capital and CRCM ventures, the company raised a big slug of cash that lifted its overall funding to $7.3 million, which represents an enormous boost in percentage terms.
So far, around 19,000 drivers in all 50 states, as well as in 23 countries on six continents have signed up to bring Cargo service to their cars. For those not already familiar, Cargo functions as something like a small-scale convenience store located in a car. With snacks, personal care items and even small electronics in play, those who call for an Uber ride or the like can pick up impulse buys even as they’re being driven to their target destination.
The drivers offering Cargo, meanwhile, are paid accordingly on commissions of sales and similar bonuses, up to $500 per month on top of what’s already earned. Cargo has seen some impressive gains already, with 55 percent growth in month-to-month figures.
With the newfound investment, Cargo looks to expand still farther beyond the original test markets and onto a wider stage. A good plan overall; we recently heard about Cargo’s plans to hook up with Red Bull just in time for Super Bowl LII, which should go together like a hand in a glove. The notion of offering impulse buy items to people who may not be in full control of their faculties may seem like a fundamental breach of ethics, but it’s really not anything that isn’t already being done at late-night pharmacies and convenience stores as is.
All Cargo is doing is cutting out the middleman; hitting ridesharers right where they live—in the ride-shared car—is a natural extension of the operation. It’s reasonable enough, and should give Cargo a great chance to head for the top of the earnings ladder thanks to complementary goods and a comparatively captive audience.