People Plus Packages

The ability for anyone to get in their car and open up an app and get business has turned into an enormous market in the past five years. The two biggest categories are “ridesharing” (Uber, Lyft, Sidecar) and “delivery” (Postmates, Deliv, etc).

But there isn’t any reason why these two categories need to be separate. The most efficient utilization of the car and the driver’s time is to put people plus packages into the car at the same time.

And that is what our portfolio company Sidecar is announcing today. Sidecar has leveraged their shared rides technology (where two riders can share a trip and save a lot of money) to make it possible for a driver to pick up a passenger and then a package (or the other way around) and do the trip at the same time.

Sidecar is not doing the delivery piece direct to the consumer (like Postmates or UberFresh) but instead is a third party logistics provider to ecommerce companies that want to offer same day (or same hour) delivery to their customers at a price that is affordable.

Sidecar has been offering “people plus packages” in San Francisco for a while now and it has reached 10% of total ride volume. Their ecommerce partners are getting prices that are up to 80% below traditional same day delivery fees and they have cut delivery times in half. Today they are announcing that they are expanding their same day delivery service to all of their markets in the US.

Combining people plus packages is a win/win/win. Riders get even lower prices for their rides. Drivers make more money (up to 75% more in the San Francisco trial). And ecommerce companies get a less costly and faster way to get their products delivered same day (or even same hour).

Sidecar has a delivery API that allows you to integrate their driver network directly into your app so that your users can see the progress of their delivery in real time. If you are an ecommerce company that wants to leverage Sidecar’s network of drivers around the US, you can visit their Delivery page and learn more.

The innovation cycle in the “ridesharing” market is breathtaking. If you want to stay in the game you have to keep innovating and do that quickly. The result is new services, new markets, and new possibilities. And people plus packages is exactly that.