Cargo raises $5.5M to let Uber drivers sell snacks and essentials nationwide
techcrunch.com
techcrunch.com
That's not to say it's a terrible thing; drivers deserve to make a living, too, and I guess it'll add a few bucks to their monthly revenue. But, at some point it's kinda ridiculous. And, I don't want to take a ride where I'm being pitched on snacks and "essentials". Every human interaction really shouldn't be viewed as a marketing opportunity. But, I guess we get the world we deserve and are willing to pay for (I don't know what the better alternatives would look like in terms of transit).
Also, I’d be curious about user testing this first. How many people enter a ride in a dire need for something?
Thirdly, why can’t drivers sell things themselves and take 100% of the profit?
I'm surprised it's not against the Uber/Lyft terms of service for drivers, and probably will be soon, if it makes money for Cargo. An obvious optimization of this model is making it so the price of any snacks or "essentials" you buy on your ride is just added to the cost of your ride. So, if I were an investor in Cargo, I'd be asking, "What are you going to do when (not if, again if this is profitable) Uber/Lyft start selling products during rides?"
I've seen some drivers pitching their own businesses (i.e. mentions they're a DJ, or house painter, or handyman, or whatever, in casual conversation and has their card handy), but I've never seen one selling stuff directly in the car. I've heard some drivers give away stuff like water and what not, but I've never been in one of those cars. Maybe because I never take the fancy luxury Uber/Lyft services.
Look at gas stations. It used to be they sold gas, and maybe oil. But evidently there's no money in gas, so now they all sell unhealthful snacks and bottled water (itself an environmental disaster, which this kind of retail establishment has fostered). And there's not enough money in that, so now there's video advertising at every pump. Buying gas has become extremely unpleasant. Plus, distracting everyone all the time has ruined our what little social cohesion we had.
Now drivers are going to be asking you if you want any snacks. Because, research will show, if you ask TWICE, customers are 12% more likely to buy. Uber already has a parasitic burden which needs to be shed; namely, the idea that the only way to succeed is by being a criminal enterprise.
Parasitism is a deep property of ecosystems, so I guess we just can't have simple services and products that work, but it sure would be nice. Is there no better way to compete?
For how much talk there is around here on how unprofitable it is to be an Uber driver, it wouldn't surprise me if a similar dynamic develops in rideshare.
[0] http://money.cnn.com/2008/03/13/news/economy/gas_gallon/
[1] https://www.quora.com/How-do-gas-stations-make-their-money
Wow. Given how mileage degrades a vehicle’s value, and leads to necessary service and repair, I would guess that Uber is a net loss for the driver. Now though, a cool $100-$275 per month? How insultingly bad is this gig economy? You can literally make more flipping burgers, or begging on a busy street corner.
How much does an Uber driver make per mile? How much potentially productive time do they spend not earning, cleaning and otherwise trying to keep their rating up?
https://www.ridester.com/how-much-do-uber-drivers-make/amp/
Goddamn that’s not good. I’ll say it again, you can earn orders of magnitude more by begging. I don’t recommend that, but I don’t recommend Uber either.
"Would you like a snack or beverage?" "No thanks"
"sure? We have Red Bull, Coke, choc bars, chewing gum" "Like I said, no thanks"
"We have a special discount on Coke today" "still no"
"OK. I see from your Uber account you're a software developer, that's great!"
"We have a short presentation that's just perfect for you!"
(Do they lock the doors, time-share style, until you've watched all of it?). "Hi Uber passenger, ABC Recruiting have a great job opportunity for you.... " (pitch continues)
"...press button below to go straight to in-car interview!"
Just no.I'm definitely not saying it's a good thing. I lost all patience for it years ago, but I get how it happens. It makes a sad sort of sense. Don't want to properly fund schools because it means you pay an extra point on your taxes? OK, let's sell the kids' attention to the highest bidder. Let's put some junk food vending machines in the halls while we're at it. (Or, more realistically in most states where school budgets are tied to local tax revenue: Rich districts get an ad-free and well-funded education experience, while poor districts have to pursue every possible avenue to raise funds.)
I wish I knew how to turn it around. Nobody likes it, as far as I know. But, nobody seems to be doing much about it.
What makes you think that job seekers are the standard demographic of Uber riders? If anything, I'd think you'd have more luck pitching new jobs to the drivers.
Since I was by now in a picky mood about the customer service aspect, I did wonder why this driver had no 'upsells'.
So what 'upsells' would you have for the passenger in the back of a cab?
Well, you can be on a trip to a meeting in posh clothes. Just having a mirror to see if you look the part could be most helpful in a cab, obviously a full length mirror isn't going to happen but something to check the spinach in your teeth might help. So there is a whole set of breath fresheners, mints, chewing gums and whatever else people need to get the spinach out of their teeth.
Also, where can I get a latte in the back of a cab? Okay, maybe that is not going to happen, but a bottle of water can't be that hard to stock and keep chilled.
What price an umbrella when you arrive with no coat expecting better weather?
Then there are those that have not had breakfast yet. Cereal bars have shelf life, how much are they worth to late, starving people?
A small pack of tissues, costs pennies but if you are late for that interview and need to blow your nose, would you pay £1 for those tissues?
Cigarette lighters, maybe not booze and fags, but there is a whole cornucopia of every day stuff that the drunk crowd would want.
I imagine there are good reasons why cab drivers do not offer these sorts of upsells (everything can be bought en-route), however, why do you need the products to be sponsored by brands and many millions of dollars of VC to sell a few candy bars and a few combs?
Actually just a mobile phone charger in the back of a Black Cab would be progress.
Here in 'merica there's a starbucks drive thru on virtually every corner...
I often wonder (mostly when I see whatever new building is going up is yet another starbucks) how they don't manage to oversaturate the market but they always seem to be busy.
You know you're onto something when you're making private car ownership appealing to a public transport advocate.
/no one mention the dystopia where i can't block out ads, pitches and sales from my own private vehicle/house :P