Uber is launching a new shopping app with commerce partner Cargo, a startup with which it signed an exclusive global partnership last year. The app will feature items curated by Uber, including products like Nintendo Switch, Apple hardware, Away luggage, Glossier cosmetics and more, and will be available to download for Uber riders making trips in cars that have Cargo consoles on board. The Cargo app will also provide in-ride entertainment, including movies from Universal Studios available to purchase for between $5 and $10 each (with bundle discounts for multiple movies), which are then viewable in the Movies Anywhere app.
Uber riders will also benefit by receiving 10% of their purchase value back in Uber Cash, which they can then use either on future trips or on other purchases made through the Cargo app while riding. Uber drivers also benefit, earning 25% of the value of items purchased from the Cargo Box in-car, and an additional $1 for each first purchase by a passenger through the new app.
Riders just need to grab the iOS or Android app and then scan the QR code located on the Cargo Box in their driver’s car. Cargo’s app only allows purchases while on the trip, and then the item will be automatically shipped to a rider’s home address for free with an estimated delivery time of between two and five business days.
This tie-up is a natural evolution for Uber’s business — the company hosts millions of riders every week, and many of those are taking relatively long trips to and from airports and other transit hubs, which provides ample opportunity to get them buying stuff or watching purchased content. Cargo, in which Uber has some equity stake, has a good opportunity to figure out how best to make the most of those trips.
This is hardly without precedent — airlines have attempted to capture consumer interest in the skies with onboard duty-free and other sales, as well as content for purchase. The big question will be whether Uber and Cargo together can provide enough additional purchase incentive versus riders just opening the Amazon app or other commerce options they have available on their own personal devices to make it a sustainable extension of their business.