Convenience store in the car? Grab partners US start-up Cargo to offer just that

Convenience store in the car? Grab partners US start-up Cargo to offer just that

Grab is partnering startup Cargo to give its private-hire car drivers another way of earning a buck by offering snacks, beverages and beauty items to commuters through a new service called Grab&Go.

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The products will be stored in the Grab&Go box, and passengers can order them through the website. (Photo: Grab)

SINGAPORE: Feeling peckish or thirsty while stuck in traffic? Not a problem, if you’re in a Grab car equipped with a “convenience store”.

That is the value proposition of Grab&Go, a new service the ride-hailing company is offering via its partnership with US-based in-car commerce start-up Cargo that was announced on Monday (Jun 4).

Private-hire cars equipped with Grab&Go will be able to offer passengers a mix of complimentary samples and retail products. The samples include Biore UV body care serum, Novu’s skin masks and Lux Luminique Botanical haircare range, said Cargo in the press release.

Other products on offer include Milo can drinks, Mentos, Oreo cookies and Aqua mineral water, said Cargo founder Jeff Cripe in an email to Channel NewsAsia. 

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(Image: Grab)

Passengers make their purchases through Grab&Go’s online menu via their smartphones. 

After making their selection, they enter a unique five-digit code to make sure payment goes to the right driver, and the cost is added to the final Grab fare. The driver will hand over the products to the passenger once the vehicle is safely stopped, the company said. 

“In Southeast Asia, Grab and Cargo identified trendy snack and beauty brands that would surprise and delight passengers,” said Mr Cripe of the product mix on offer.

DRIVERS GET EXTRA INCOME

Beyond the convenience for passengers, Grab&Go drivers will also get to earn extra revenue. Each time someone makes a purchase or takes a sample for free, the Grab driver will earn a cut, with Cargo saying they could earn an additional S$75 to S$250 a month. 

Mr Cripe explained that Grab&Go drivers earn 20 per cent commission for every paid sale and a S$1 bonus on every transaction, with the remainder going to Grab&Go. 

He added this partnership with Grab is its first international foray, following its US launch last June. The US start-up said it raised US$8.5 million in venture funds to scale its operations across the US and international markets.

The service is launching with 1,000 cars, but he added the hope is to bring Grab&Go to “Grab’s 2 million-plus driver-partners across Southeast Asia”. 

“Hundreds” of GrabCar drivers have signed up to offer the service, the ride-hailing company separately told Channel NewsAsia, and it is actively bringing those interested on board the programme. 

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An example of the order screen for Grab&Go products. (Image: Grab)

“At Grab, we are always thinking about ways to better serve our customers,” said its head of Regional Advertising Nash Islam. “We’re excited to partner with Cargo to deliver more value to our passengers, while increasing the number of income streams available to our driver-partners.”

This is the latest initiative by the ride-hailing company to monetise the time passengers spend while commuting using its platform.

In April this year, Grab signed a memorandum of understanding with Mediacorp to co-create content for passengers and provide income opportunities for its drivers. Those interested can deck out their cars with in-car tablet or other media assets like car wraps and in-car hangers for additional income, they said then. 

Source: CNA/kk

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