The platform for food deliveries, groceries, and alcohol products Postmates has gone a long way since its founding. More so in 2020, since it was acquired by Uber, it has even proven itself further as a trailblazer in the industry.
Postmates may be among the most quiet delivery platforms nowadays, as noticeable with their few news stories, but recently, Business of Apps, a popular London-based B2B media, has given them the spotlight. The British media reminisced the legacy of Postmates so far. Let the Ridesharing Forum team echo what it found out.
‘Tentativeness toward food delivery’
“In a sea of food delivery apps, Postmates stands out not because of its business or employment model, but because of its tentativeness towards food delivery,” wrote Business of Apps correspondent David Curry.
Curry went on by highlighting a remarkable statement from the platform’s chief executive officer Bastian Lehmann who said “food to Posmates is what books are to Amazon.”
Before the acquisition of Uber, Postmates marketed itself as the new-generation Craigslist. Via the original Postmates, buyers in San Francisco, California first were able to purchase anything – flowers, refrigerators, and whatnot – and get them at their doorstep in just two to four hours.
This branding has attracted investors to pour in their money to Postmates, such as the Founder’s Fund investment of $5 million in 2013, Curry recalled.
Important statistics
The B2B media made sure it drove home its point by sharing with the general public some key statistics about Postmates’ success.
In 2021, the platform generated about $730 million in revenue, a 14 percent increase year-on-year. Furthermore, now, it enjoys its estimated 9.3 million monthly active users, ordering around five million items per month. Plus, there are now more than 600,000 merchants on Postmates.
Brilliant. However, those do not go without challenges along the way. Read on.
Business challenges
As with other successful businesses, no triumph would be possible without hurdles.
Postmates once had a delivery fee more expensive than the fees of other leading rivals, such as DoorDash and Grubhub. But, surprise, surprise, California people, who live in where Postmates started, were willing to pay what Postmates is asking, even if it would hurt their pockets a bit. Eventually, it lowered its fees.
However, Postmates also went through controversies on this when it went against restaurants and businesses it is partnered with. In 2015, around five years before the landmark Uber acquisition, several business owners complained that the platform was “taking delivery orders without receiving permission,” Business of Apps ruled out.
Also, Postmates also saw its market share tumble at one point, since DoorDash and Uber Eats supplanted Grubhub. While it saw growth in some cities such as Los Angeles, it went far behind the market share leaders.
Today, Postmates is one of the go-to platforms in the United States for deliveries, trumping several small-time platforms keeping up with the competition. Not to mention it’s simplistic website, of course.
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