Cargo wants passengers to be able to grab a snack or a pack of tissues from their driver during their ride

Cargo, a startup intimately tied to Uber, just closed a $5.5 million seed round for its venture that lets drivers sell products to their riders. While PSFK has covered Cargo before, the funding represents a significant step forward for the idea and came with more details on how the whole system will work after applied tests of the concept.

The startup sends drivers a high-tech tray and a monthly supply of goods for free. For every item sold, drivers get a $1 base commission plus 25% of the sale. According to Cargo, Uber drivers can earn a $100 more with its service, and some of its top drivers earn up to $300 every month.

The startup doesn’t exactly work like a store. Many of its products are given by brands like Kelloggs as freebies to riders. Brands get consumer data from Cargo while Cargo charges brands for access to its distribution network. According the startup, the actual sales alone aren’t even the big source of revenue yet. The startup plans to send out its hardware to 20,000 cars and open in one new city each month for the next six months.

Cargo

Cargo, a startup intimately tied to Uber, just closed a $5.5 million seed round for its venture that lets drivers sell products to their riders. While PSFK has covered Cargo before, the funding represents a significant step forward for the idea and came with more details on how the whole system will work after applied tests of the concept.

The startup sends drivers a high-tech tray and a monthly supply of goods for free. For every item sold, drivers get a $1 base commission plus 25% of the sale. According to Cargo, Uber drivers can earn a $100 more with its service, and some of its top drivers earn up to $300 every month.