- Jul 26, 2021
According to SEC filings, Cargo has raised $22.5 million in a series A round of funding. The $22,499,997 Founders Fund led by Peter Thiel’s Founders Fund, with participation from Coatue Management, Aquiline Technology Growth, CRCM Ventures, Rosecliff Ventures, Kellogg’s Eighteen94 capital, RiverPark Ventures, and a series of notable individual investors, including Zynga founder Mark Pincus and Def Jam Records’ CEO Paul Rosenberg.
The news leaked earlier this week but the official announcement was made today as it plans to spend the money. The startup plays is playing in a small but potentially lucrative segment of the retail market that is in-car commerce.
The start-up founded in 2017 had partnered with brands across confectionery, electronics, cosmetics, and more to offer ride-hailing passengers access to goods including chocolate bars and USB cables during their trip. The startup outfits vehicles with a box of goodies passengers can purchase through the Cargo site; an idea that has piqued the investor’s interest.
Cargo provides qualified ridesharing drivers with free boxes filled with the kinds of goods you might find in a convenience store, including snacks and phone chargers. The rider can pay using the usual array of mobile payment services, such as PayPal or Android Pay.
The company now claims 12,000 activated drivers covering in seven other countries including Chicago. Cargo says it will use the capital to scale its business in the U.S. and internationally. It’s also working on new digital services – a development Banister eludes to – that will improve users on-trip experience.
Recently it had its partnership with Uber and an international licensing deal with Grab and with its $22.5 million raise in the bank, it plans to continue growing domestically and internationally with improved on-trip experience.