Can Backseat Snacks Help Uber Take Brazil?

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A center console-strapped box of for-purchase sundries that makes Uber vehicles into rolling convenience stores will now be available in Brazil, a critical market to win the Latin American ride-hail race.

boxes, while a passenger amenity as a center console-strapped translucent box of standard impulse puchases, are also an opportunity for drivers. Those drivers get a cut of Cargo sales, and that boosts their potential earnings on each ride. After a good sales day, they can easily refill on products at an Ipiranga gas station, where ampm stores are sited.

Passengers use their phones to buy snacks out of the Cargo box; it allows precision replenishment from Cargo's suppliers with minimal effort by the driver. In the U.S. drivers get stock shipped directly to them; in Brazil drivers will go to Ipiranga gas stations.So far, Uber and Cargo have accomplished their own symbiosis in top U.S. ride-hail markets with a variety of products. New drivers get their Cargo boxes and product replenishment via shipment, not pick-up at a brick-and-mortar store.

Uber doesn't count its registered drivers or passengers by region and so can't say how many potential drivers in the two metropolitan areas might go to their local Ipiranga ampm to collect one of the Cargo boxes that will be stocked with locally favored snacks such as Toddy Cookies and Amoras Fini gummies, but throughout Brazil, the company counts 600,000 registered drivers and 22 million registered users.

Ipiranga also does not have localized numbers, but nationwide there are 2500 ampm stores at its gas stations. Cargo reports the fastest registration blitz yet for new cities, with 1000 newly registered drivers already on the Cargo platform in both cities. Cargo declined to detail specific plans and the timeline for the overall strategy -- when will its tantalizing treats help Uber take Mexico City's huge market? -- except to acknowledge that there is and always has been a long game. Via email, founder and chief executive Jeff Cripe said,"Our partnership is global and after we launched in [Los Angeles] and [San Francisco] last July, Uber and Cargo developed a strategy and playbook for new market launches domestically and internationally.

 

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