Jul 19, 2018

Uber equips drivers with Cargo snack boxes

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.

Go deeper

U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

Coronavirus antibody tests are still relatively unreliable, and it's unclear if people who get the virus are immune to getting it again, the Centers for Disease Control and Prevention cautioned on Tuesday.

By the numbers: More than 98,900 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 384,900 Americans have recovered and more than 14.9 million tests have been conducted.

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Mexico reported its highest single-day death toll on Tuesday, after 501 people died from the coronavirus, per data from Johns Hopkins and the country's health ministry.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Tuesday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.9 million tests).

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9:30 p.m. ET: 5,588,299 — Total deaths: 350,417 — Total recoveries — 2,286,827Map.
  2. U.S.: Total confirmed cases as of 9:30 p.m. ET: 1,680,625 — Total deaths: 98,902 — Total recoveries: 384,902 — Total tested: 14,907,041Map.
  3. Federal response: DOJ investigates meatpacking industry over soaring beef pricesMike Pence's press secretary returns to work.
  4. Congress: House Republicans to sue Nancy Pelosi in effort to block proxy voting.
  5. Business: How the new workplace could leave parents behind.
  6. Tech: Twitter fact-checks Trump's tweets about mail-in voting for first timeGoogle to open offices July 6 for 10% of workers.
  7. Public health: Coronavirus antibodies could give "short-term immunity," CDC says, but more data is neededCDC releases guidance on when you can be around others after contracting the virus.
  8. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 1 hour ago - Politics & Policy