Kellogg's investment arm buys stake in ride-share snack company Cargo
Kellogg’s investment arm, eighteen94 capital, has bought a stake Cargo, a New York startup that allows rideshare drivers to sell snacks in their cars.
Cargo has raised US$5.5mn to help expand the enterprise following investments from eighteen94 and CRCM Ventures.
Likened to installing a convenience store in a car, Cargo provides products such as crisps, chewing gum, mints, confectionery, energy drinks, phone charges and over the counter medications.
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These products are currently from brands such as Kellogg, Mars, Michel et Augustin and Leaders cosmetics USA, according to the company website.
Through the start-up, drivers can order a free box of products to install in their vehicle for display. Then customers can try the products and place orders for both complementary and retail items through the company's mobile website.
Many of these items are offered for free thanks to collaboration from brand partners. In return, brands gain anonymous data about peak selling periods for their products.
According to Goldman Sachs, the global ride-share market is projected to reach US$295bn by 2030. Therefore, Cargo hopes to offer a convenient distribution channel to allow snack companies to focus on direct-to-customer marketing.
Speaking of the investment, Simon Burton, managing director of eighteen94 capital, said: “Cargo represents eighteen94 capital fund’s first channel investment. We see huge potential in the new consumer touchpoint within the passenger economy that Cargo is developing.”
“Cargo provides brands with innovative opportunities to connect to the consumer in their moment of need.”