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Cargo? Vendigo? Can drivers make more money by vending to passengers?

Published by Seinfeld in the blog Seinfeld's blog.

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How can drivers make more money? By selling candy, charging cords, and condoms to passengers. Yes, as independent contractors, it is allowed. Two companies, Cargo and Vendigo, are looking to capitalize on this opportunity by providing kits and merchandise for drivers to sell. But, how can a driver really make more money? Eliminating the middle-man (Cargo and Vendigo) and running their own business.

Cargo provides everything needed to start their in-car vending service for free. Selling the “cargo” a driver makes a whopping $.50cents per sale. So if you work 5 days a week, and sell 3 items per shift, you will make $1.50 per day = $7.50 per week = $30 per month. :( Cargo requires the customer to pay on their mobile website. Imagine your usual passenger, somewhere between tipsy and plastered, trying to navigate a mobile site on their phone hoping to purchase some munchies or a prophylactic. While it is nice that there is no risk cost in using the Cargo system, there is also very little reward. To make the $300 that Cargo claims drivers can make, you would need to sell 600 items per month, which means 30 items per day, 5 days a week. 30 items per day!! With an average of 2 rides per hour that means working 15 hours? Is is my estimation that if you sold these same 30 items per day, 5 days a week, from your own inventory you would easily make 3x as much money. That would calculate out to $1k per month.

Also in the space, Vendigo, is looking to provide vending machine kits for drivers to top their center consoles. The kits start at a reasonable $40, and Vendigo claims that if you sell everything in the kit at retail price you will pay for the kit on the first go-round. Then you can restock whatever items you want from Vendigo, and continue to sell for a profit. Vendigo also offers a square reader to use with it’s service, making it a little easier for the drunks to spend some money on your vending goods by simply swiping their credit cards. However, Square will provide anyone with their credit card reader for FREE (https://squareup.com/reader). I took a closer look at Vendigo’s product pricing for drivers, and it was considerably higher than buying equivalent products from Amazon.

Micro USB phone charging cable 2 pack $7.99 = $3.50 per cable, 4.7 stars, 4400 reviews
Vendigo supplied: $7.99 per cable - Vendigo cost $4.49 more than Amazon

Iphone cable 3 pack $9.99 = $3.33 per cable, 4.3 stars, 284 reviews
Vendigo: $7.99 per cable
Vendigo cost $4.66 > Amazon

15 Kind bars, $9.49 = $.63cents per bar, 4.2 stars, 1700 reviews,
Vendigo: 12 Kind bars, $9.99 = $.83cents per bar
Vendigo cost $.20 per bar > Amazon

Dual USB wall charger $5.99, 4.5 stars, 108 reviews
Vendigo: Ventev wall charger $7.99
Vendigo cost $2 more per charger than Amazon

USB car charger $4.99, 4.6 stars, 1400 reviews
Vendigo: Ventev Car Charger $7.99
Vendigo cost $3 more per charger than Amazon

Buying the products directly on Amazon a driver will make 50-300% more in profits. And that is buying in small quantities. You could do even better to buy charging cables, chargers, candy bars and other supplies in bulk/wholesale. And the best part about creating your own vending business is that you get to decide what you sell!

So drivers, if you want to make some money; take control of your own business. Get a free Square reader, and order a shipment of goods from Amazon! Use the links above to get some Amazon vendibles, and get started today increasing your profit as a rideshare driver. I hope you will be inspired and share your experience.
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