---
title: "Ride-Hailing, Taxis, and Buses Turn into Mini Convenience Stores? In-Car Convenience Stores Are About to Boom!"
description: "2017 seems to be the most turbulent year for retail formats, with convenience stores being hailed as the 'next big thing.' Their booming development has attracted innovative elements, such as in-car convenience stores. For instance, in the US, New York startup Cargo has introduced a new business model by setting up convenience stores in Uber drivers' cars. They persuade drivers to place a small box next to the driver's seat, typically where cups and other items are stored. The box contains various small items like gum, energy bars, and chocolate..."
author: "New Distribution"
publisher: "New Distribution"
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published: "2017-12-11"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/ov9qXiPHHv8lpSE_zWT21Q"
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# Ride-Hailing, Taxis, and Buses Turn into Mini Convenience Stores? In-Car Convenience Stores Are About to Boom!

> 2017 seems to be the most turbulent year for retail formats, with convenience stores being hailed as the 'next big thing.' Their booming development has attracted innovative elements, such as in-car convenience stores. For instance, in the US, New York startup Cargo has introduced a new business model by setting up convenience stores in Uber drivers' cars. They persuade drivers to place a small box next to the driver's seat, typically where cups and other items are stored. The box contains various small items like gum, energy bars, and chocolate...

2017 seems to be the most turbulent year for retail formats, with convenience stores being hailed as the 'next big thing.' Their booming development has attracted innovative elements, such as in-car convenience stores. Have you heard of them?

Take the US, for example.

New York startup Cargo has introduced a new business model by setting up convenience stores in Uber drivers' cars. They persuade drivers to place a small box next to the driver's seat, typically where cups and other items are stored. The box contains various small items like gum, energy bars, and chocolate. Customers can enter a code on Cargo's mobile page and pay to take items. According to Cargo, this model brings drivers extra income, averaging $100-300 more per month per driver.

Not just in the US, in-car convenience stores have also started in China. On December 5, in-car convenience store 'Mobile Go' secured 12.5 million yuan in angel funding, led by GSR Ventures, with participation from Wang Gang and others. Mobile Go is already operational in Hangzhou.

Mobile Go brings the new retail scenario into ride-hailing cars. Passengers can scan a QR code after boarding to purchase items from boxes on the seat backs and between seats, including drinks, food, daily necessities, and emergency items.

For driver enrollment, applicants must be compliant Didi drivers and pay a 299 yuan deposit for the Mobile Go Box. After completing online verification, they can activate and pick up goods at offline stations.

Drivers do not directly purchase goods; the platform pushes restocking information based on its system, and drivers follow the instructions to restock. As the sales scenario, drivers receive a 20% commission on daily sales. According to Mobile Go's website, drivers can earn an extra 500 yuan per month, including commissions, tiered rewards, and asset maintenance fees.

As an in-car convenience store relying on Didi, Mobile Go has close ties with Didi. Both companies are invested by Zhu Xiaohu, and Mobile Go's CEO Han Zhenwei is a former Didi employee. Reports say Han previously served as operations director for Didi's Express division and left in November. Additionally, Mobile Go's registered company name is Beijing Xiaoju Convenience Technology Development Co., Ltd., which is similar to Didi's registered name 'Xiaoju Technology.'

Before Mobile Go, a Shenzhen-based company 'gogo' had already introduced the in-car convenience store model. gogo focuses on exploring 'travel e-commerce' new retail, with core team members from Alibaba and Huawei, and its CEO has multiple successful startups. It has secured tens of millions in angel investment.

According to gogo's brand representative Dasheng (nickname), the core advantage of this model is high-density passenger flow. Each car carries an average of 60 passengers per day, 1,800 per month, and over 10,000 in six months, with an average ride time of 20 minutes, enough to create high-frequency consumption. Data shows that in 2014, there were 1.37 million taxis nationwide, carrying 40.6 billion passengers—an enormous and even terrifying flow!

As of July this year, in gogo's home base of Shenzhen, over 3,000 taxis have joined, and two bus companies have signed contracts to create bus experience stores. In Beijing, Taiyuan, Xinyang, and Nanjing, gogo in-car convenience stores have also started trial operations, with total store count expected to exceed 4,000.

According to gogo's data, from the launch of the experience car in May last year to May this year, over 530,000 passengers have experienced this taxi shopping format, selling 560,000 items with total sales of 7.36 million yuan. Passenger purchase conversion rates range from 10% to 30%, taxi drivers earn an average of 2,000 yuan more per month, and over 100 suppliers have partnered, including first-tier brands like Master Kong, Red Bull, and Bestore.

It is understood that all goods are purchased centrally by gogo at first-tier supplier prices, and goods are stored in areas where drivers live for easy distribution. To broaden the user base, most of the early profits go to drivers.

Regarding future plans, Dasheng told Food Board that gogo plans to cover Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Hangzhou, Taiyuan, and Jinan in 2017, with 10,000 stores; in 2018, cover first- and second-tier cities nationwide and heavily occupy the chauffeured car market, with 50,000 stores; and in 2019, include third-tier markets, reaching a total of 200,000 stores...

Observation shows that the consumption scenarios for such in-car convenience stores are extremely fragmented, and average transaction values cannot compare with regular convenience stores. However, since there are almost no additional costs, any revenue is profit, which actually solves the current problems of heavy burden and low profitability in convenience stores. Moreover, in the enclosed space of a taxi, passengers' attention to products is more focused, and even without purchase, it serves as a physical display and promotional opportunity for the brands.

In-car convenience stores—mobile mini malls—do you see their potential?

Source: Food Business
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