Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Photo: Uber
In its quest to help drivers make more money on the job, Uber has inked a deal with Cargo, a startup that provides ride-hailing drivers with boxes of snacks and items passengers can purchase.
The bottom line: Earnings are drivers' top priority, so it's in Uber's best interest to help them earn more. In turn, this can motivate drivers to work more hours, which benefits Uber (and it doesn't have to fund these incentives itself).
How it works: The partnership will first roll out in Los Angeles and San Francisco.
- Drivers can get a Cargo box from select local Uber centers, at no cost to them. The boxes are stocked with about 30% free items (samples from brands) and 70% paid items. Drivers make $1 per transaction, plus 25% commission, and $20 per referral to another driver.
- Though passengers can purchase items via Cargo's app, they can also just use its store's website, or scan a QR code with their phone camera or Snapchat app. Eventually, it wouldn't be surprising to see Uber integrate Cargo into its rider app — the company can earn equity in Cargo based on factors like generating certain volumes of transactions.
What drivers are saying: "The products pretty much sell themselves since it's such a novelty and it's so visible. I've gotten a lot of good feedback from passengers about it," Harry Campbell, author of "The Rideshare Guy" blog, tells Axios. He adds that he hasn't had to push the products on his passengers — they usually notice the box on their own and ask about it.
- Cargo already has 7,000 drivers using its service, who have earned more than $1 million since its debut a year ago. Cargo says drivers earn $100 per month on average.
Bonus confidence: Several former Uber employees and execs have invested in Cargo, a source tells Axios, underscoring its appeal to the ride-hailing business.