Brief:

• Ride-hailing giant Uber created a shopping app with Cargo, the in-car vending start-up, to let customers buy products while they're on the go. The Cargo Store app will sell items like the Amazon Echo, Apple AirPods, Away Luggage, Glossier make-up and Oculus Go devices, per an announcement shared with sister publication Mobile Marketer.
• Cargo Store users get back 10% of their purchases in Uber credits that can be redeemed on future Uber rides or Cargo purchases. The app, which only works during an Uber trip, also will have daily deals to give riders a chance to buy limited-time items. Cargo Store offers free shipping on all products, which are sourced from local warehouses, per its announcement.
• The Cargo Store app will also include in-ride entertainment through a partnership with Universal Pictures, selling movies for $5 to $10 each, or in bundles for $15 to $20. The entertainment options are aimed at people who take longer trips, such as to and from airports, CNBC reported.

Insight:

The Cargo Store app aims for a slice of the more than $200 billion in-car commerce opportunity as ride-hailing apps like Uber give consumers more time for mobile-based activities like shopping or consuming media. The app is the latest culmination in an exclusive partnership that Uber and Cargo formed last year to build up an in-car commerce business. It also shows how Uber is trying to make its rides more appealing than competitor services like Lyft and Via.

The Cargo Store app expands the product range that Cargo and Uber can offer to their on-the-go customers. Cargo's initial service equipped ride-hailing cars with vending boxes filled with impulse-purchase items like snacks, drinks and mobile accessories. The company aims to give ride-hail service drivers a way to earn extra income from passengers while giving consumer packaged goods (CPG) companies a chance to reach a captive audience of on-the-go consumers. Cargo has touted itself as the only scalable, data-driven in-car solution for reaching millennials and Gen Zers who use ride-hailing services, and has gradually expanded in major cities throughout the U.S. 

Cargo also has expanded its marketing partnerships with brands that want to reach a captive audience in ride-hailing vehicles. Candy maker Hershey's in April worked with Cargo on an Easter-themed retail and sampling campaign for its Reese's Peanut Butter Eggs and Cadbury Crème Eggs. In January, Cargo teamed up with SeatGeek, the online marketplace for sports, concert and theater tickets, to offer discounted ticket sales to riders, while the company struck a deal with mobile payment service Venmo in November to let passengers pay for goods in the payment app.