Uber and Cargo Rolling Out In-Car Payment Option

Uber and Cargo Rolling Out In-Car Payment Option

FACTS

  • The American ride-sharing giant Uber and their partner Cargo unveiled a new service for Uber passengers.
  • This service relies on Cargo Shop mobile app.
  • Customer process:
    • Uber passengers are prompted to download the Cargo Shop app
    • They scan a QR code displayed in the Uber vehicle during the ride
    • With this QR code, they have access to a list of products (Apples AirPods, Nintendo Switch, RayBan sunglasses, etc.), updated on a daily basis
    • Their order has to be validated on-trip
    • Cargo is in charge of shipping the orders for free to the buyers’ home address, within 5 days
  • partnership features exclusive advantages for passengers and Uber drivers
    • All purchases made during the rides offer a 10% cashback on future purchases or Uber rides
    • Each day, passengers may also open the app and scan a QR code in Uber vehicles to take part in a game and win gifts (Uber coupons, discounts from partner merchants, high-tech products or luxury cosmetics)
    • A partnership between Cargo Store and Universal Pictures lets Uber passengers enjoy exclusive or cheaper content
    • Car drivers earn up to 25% on the value of each in-car purchase, and an extra $1 every time passengers orders in-car through the Cargo Store app.

CHALLENGES

  • Diversifying in-car services. Uber and Cargo are highlighting a trend as more in-car purchasing offer are seeing the day. This service is particularly relevant in the ride-sharing industry. Uber features a value-added service and stands out from competition.
  • Customer loyalty. Their cashback provides Uber with a tool enhance customer loyalty.

MARKET PERSPECTIVE

  • The Uber/Cargo partnership is being renewed. They already allowed passengers to order items such as snacks and phone chargers, and now include technological and luxury products, making room for the Duty-Free sales model already standard in-flight, for instance.

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