Ever felt hungry or spilled your coffee in an Uber? Technology startup Cargo has found a solution to those issues and more with its new compact vending machines designed for rideshare vehicles like Uber and Lyft. Cargo’s CEO and Founder, Jeff Cripe, joined FOX Business Network Wednesday to share how investors and even drivers can make a profit.
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“We make it really easy for the driver so that when they sign up on Cargo’s website it costs them nothing. We send it to them in the mail, it’s prepackaged just like this so when they receive it they can start selling products immediately to their passengers. And as a passenger, when you get into the car you don’t have to download an app, there’s no login, there’s no sign up, there’s no nothing, you can just order products on your phone… and your driver will hand them back to you immediately,” Cripe said.
The rideshare business is an $185 billion industry and Cripe hopes to distribute the console into as many rideshare vehicles as possible to serve passengers better and make money for drivers.
“Drivers on average are earning somewhere between $1,500 and an extra $3,000 per year proportional to how much they drive. If you have more passengers and you drive more, you earn more, and so for them it’s a great way to you know offset the cost of gas, of insurance, of other things that eat into their margin as a driver,” he said.
Although the Cargo vending machines are free of charge for drivers, Cripe says “we obviously make a margin on products that we sell, but then some of the other products that are actually free, brands are paying us to distribute those you know to get them into consumers’ hands, to drive trial and ultimately hopefully make your ride better.”
Brands such as Kellogg’s (NYSE:K) and Wrigley have already invested in the startup and in return, they will receive aggregate consumer data to track consumer trends and preferences. Other items offered in the console are “discovery items like a hangover cure if you’ve had a rough night the night before or these awesome La’Bonic face masks.”