Forget your sunscreen on the way to the beach? Your Uber ride could save you a trip to the drugstore.
Cargo, a brand new York-based company founded in 2016, equips ride-hailing drivers with boxes of snacks, drinks in addition to also beauty products to offer to passengers.
On Monday, the item announced a partnership with Grab, southeast Asia’s biggest ride-hailing firm, to roll out the service in Singapore. Grab made headlines in March when the item bought Uber’s business inside region.
About 1,000 Grab drivers in Singapore will receive Cargo’s boxes starting that will week, a service the companies say will eventually expand to additional countries inside region.
Related: Grab beat Uber in Southeast Asia. the item’s just getting commenced
“All of us spend so much time in ride-share vehicles that will the item felt like there should be a way to innovate on that will experience,” Cargo CEO Jeff Cripe told CNNMoney.
For passengers, using the service can be pretty simple: they’ll be able to order products on their phones in addition to also add the cost to their fares.
For drivers, the item’s a chance to earn more cash on the road. Those offering the “Grab&Go” service could improve their passenger satisfaction ratings in addition to also earn as much as an extra $190 each month, according to the companies.
They’ll make money each time a passenger buys an item or takes a free sample coming from the Cargo box.
“They take no financial risk upfront,” Cripe said. “All that will inventory can be provided for free.”
Like additional ride-hailing companies, Grab can be looking for brand new ways to make money coming from its tens of millions of customers. The company recently expanded into food delivery in addition to also digital payments, encouraging people to use its platform to transfer money to friends in addition to also make purchases at restaurants in addition to also stores.
Cargo’s partnership with Grab can be its first direct arrangement that has a ride-hailing firm, though the item says the item already works independently with thousands of Uber in addition to also Lyft drivers inside United States. Uber in addition to also Lyft did not respond to requests for comment.
Coca-Cola ( in addition to also )Kellogg ( are among the retail partners signed up inside United States by Cargo, which says the item makes money coming from distribution deals that will can be worth millions of dollars. )
Cargo’s approach offers a brand new distribution channel for retail brands, said Sucharita Kodali, an e-commerce in addition to also retail analyst at research firm Forrester.
“The idea can be that will if people aren’t going to the store, bring the store to them,” she told CNNMoney.
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yet the item could be difficult for startups like Cargo to build a business of significant scale, Kodali added.
“You need an awful lot of cars to get any decent distribution. just one Uber or Lyft driver isn’t going to touch that will many people in a day,” she said. “Each car would likely generate less than just one vending machine.”
Cargo says the item aims to reach 25 million passengers in 20,000 vehicles by the end of the year.
Related: China’s $30 billion ride-hailing market could double by 2020
Drivers are already using Cargo’s platform in seven US cities, including brand new York in addition to also Chicago. in addition to also the item says the item has plenty of interest coming from areas where the item doesn’t operate yet. A big part of the challenge “can be just expanding in addition to also actually activating drivers,” Cripe said.
yet while the extra money could make a difference for drivers, the revenue coming from the business can be unlikely to be “game-changing” for major ride-hailing firms, Kodali said.
in addition to also if the item does turn out to be more lucrative than expected, Uber in addition to also others could just set up their own platforms in addition to also cut Cargo out, she added.
CNNMoney (Hong Kong) First published June 5, 2018: 6:11 AM ET