Uber expands Cargo in-car vending deal to NYC

Brief:

Cargo expanded its partnership with ride-hailing giant Uber to New York City, Uber's biggest market in the United States. Drivers can register to pick up a free Cargo Box, which lets them earn extra money by selling snacks and impulse items like gum, candy and chargers to their passengers, according to an announcement shared with Mobile Marketer.
The company is offering free Red Bull Energy Drink and Red Bull Sugar Free to passengers citywide to promote the service. Kellogg's, Mars Wrigley and Coca-Cola are among the brands that sell products through Cargo's boxes, which riders can scan via an app to make a purchase on the go.
Cargo said the average driver earns an additional $100 monthly after adding a box to their car, and the top 10% of earners make $300 a month. Cargo drivers typically receive higher ratings for elevated service on Uber, per the company's announcement.

Insight:

While Cargo has been available in New York, the exclusive partnership with Uber will help to support its expansion in the biggest U.S. market for ride-hailing services.

"Sixty days after launching Los Angeles with Uber, it eclipsed New York City as Cargo's largest market, which we launched 13 months prior," Jeff Cripe, Cargo founder and CEO, said in the announcement.

Uber's biggest challenge in New York City comes from Mayor Bill de Blasio, who wants to extend a cap on the number of ride-hailing vehicles allowed in the city, The New York Times reported last month. The cap was intended to cut congestion that ride-hailing vehicles cause, especially when they sit idle on city streets while waiting for a fare. Uber has opposed the cap, arguing that it's unfair to New Yorkers who rely on its app for transportation, especially in outer boroughs with fewer transit options.

Cargo has expanded its marketing partnerships with brands that want to reach a captive audience in ride-hailing vehicles. In January, Cargo teamed up with SeatGeek, the online marketplace for sports, concert and theater tickets, to offer discounted ticket sales to riders, while the company struck a deal with mobile payment service Venmo in November to let passengers pay for goods in the familiar payment app.