Cargo, a start-up that wants to let every carpooling driver open his own convenience store in his car, has just raised $ 5.5 million in a round table that he calls preferential financing.
During the summer, we covered the company's $ 1.75 million seed round, while they were just beginning. Now, they have 2,500 cars on the road in New York, Chicago, Boston and Minneapolis, with 20,000 driver registrations from all 50 states.
Funding comes from CRCM Ventures and eighteen hundred and eighty-nine capital, which is Kellogg's venture capital fund. Kellogg is also one of Cargo's first customers, who, with companies like Mars Wrigley and Red Bull, is using the startup as a marketing and distribution channel to offer free products to Cargo passengers. In exchange for the supply of free products and the payment of marketing fees, these companies receive anonymous data on the date on which their products are distributed, which allows them to know when their products will sell best.
"Cargo represents the first investment channel of the eighteen-year-old equity fund.We see tremendous potential in the new consumer touch point within the passenger economy that Cargo is developing Simon Burton, CEO of eighteen-year-old capital, said in a statement, "Cargo provides brands with innovative opportunities to connect with consumers in difficult times."
These free samples also help Cargo to sell its paid goods – about 30% of all transactions occur after someone has tried a free transaction to get one of the sponsored items. Drivers receive 50 cents for each item they distribute, with the average driver earning between $ 100 and $ 115. However, the top ten percent of drivers convert something between 30-60% of passengers into customers and up to $ 275 per month.
Up to now, there is a 50 to 50 revenue split between Cargo who sells products directly to motorcyclists and who receives product manufacturer distribution offers. The startup plans to deploy its hardware and software solution in about 20k cars and open a new city each month for the next six months before attempting to mount a Series A to propel it to 100k cars and cars. of the.