The natural step in Uber’s evolution was to add in ride features for passengers and incentivize drivers to promote them. Just like alcoholic beverages, food, or premium movie/internet service on an airplane, Uber and Cargo (an in-car commerce platform) have launched their own venture to add value to the riders and drivers experience.
Cargo is an app that operates on its own, separate from Uber, but with this new venture, drivers can now link their Cargo app with the Uber driver’s scan code to activate in app purchases. Cargo offers purchases such as Nintendo Switch, Apple hardware, Away luggage, Glossier cosmetics and more. Those items if purchases on the ride will be shipped directly to the riders home within 2-5 business days. Additionally, Cargo will offer “in ride entertainment” with movies available for purchase from Universal Studios ranging from $5-$10, and riders will have permanent access to those movies in the Movies Anywhere app.
Why utilize this feature? Well for starters, every purchase by a rider earns 10% of their purchase value back in Uber Cash to use on future rides. So those who frequent Uber are now incentivized to use this service saving them money down the line. For drivers, the incentive to promote the platform is certainly high, as they earn 25% of the value of items purchased in the Cargo app, as well as $1 for every first purchase by a new customer.
In theory this seems like a great idea and a great partnership between the two companies. The question remains, what will stop consumers from just ordering items they may need through Amazon while on the ride, or using their available entertainment options such as movies, Apple Music, or Netflix streaming services? Time will tell, but we think Uber and Cargo are on the right path here for providing more value to ride-sharers nationwide.