Postmates Business Model-Know More

 Today’s busy schedule has made life monotonous and even family members do not have time to sit and cook for each other.  Postmates is an online commodity service that delivers whatever the customer demands on their doorstep. It delivers grocery and food items from local grocery stores and restaurants to the doors of customers.  Post mates came into existence in the year 2011 and has its headquarters in San Francisco, California.  It has its firm footing in 100 locations in the United States. It operates similarly to Uber operates. The customer gets a notification on their mobile phones and the employee delivers their goods to their doorstep. Let us know more about that the Postmates Business Model-Know More.

Postmates Business Model-Know More

Postmates Business Model

Post mates were an instant hit among customers as they provided ease to have anything in any part of the city. In four years it has achieved great success and already partnered with bigger chains such as Mcdonalds, Starbucks, and various other sectors.

Recently in the year, 2020 Post Mates was taken over by Uber. Post Mates till the year 2020 had a 100% customer satisfaction rate. Post mate operates in 134 cities in the United states and made a firm footing in the US market.

For any Revenue/business model there is a need for funding. Funding provides the backdrop of any business plan. Post mates time to time got funding from different organizations. The investors are listed below:-

SEED funded 60 K dollars.

ANGEL funded 750K dollars

ANGEL funded 1.2 Million dollars

SERIES A funded 5 million Dollars

SERIES B funded 16 million Dollars

SERIES C funded 35 million dollars

SERIES D funded 80 million dollars

SERIES E funded 300 million dollars

SERIES F funded around 100 million dollars.

Firstly Post Mates was run by Angel Pvt ltd. In the beginning, the company partnered with firms such as Uncork Capital and Matrix Partners. The company’s main aim was to exhibit the small products on big delivering websites. The idea of partnering with the firms made post mates a huge hit among the locals and in the year 2015 they expanded their staff.

Even in the year 2020 which was difficult for every business still postmates continued to thrive, they inculcated some fantastic points in their strategy like no contact delivery and ensuring every delivery man is vaccinated. Which made the customers more loyal to the company.

Business plan

Post Mates have designed a business plan which makes post mates work efficiently and effectively.  Their business plan consists of:-

They have partnered with local restaurants and local vendors to deliver the products with the help of delivery staff.

Marketing the products online and making content so that they can get maximum outreach. The key resources which are the fuel of the company are its partnerships with restaurants and their delivery staff.

The company interacts with the customer on social media and have a 24*7 helpline which will help the customers to place orders and rectify any doubt.

The company interacts through channels such as the Post mates website or post mates app for android and IOS platforms.

The prime work for the company is to take online orders and hire the proper staff that is properly trained for delivery and arrange proper logistics so that they can deliver products hassle-Free. And processing hassle-free transactions. The sources of revenue generation are the commission they get and some marketing programs of the restaurant.

The costs body involves the digital expenditure, salary of the staff, and logistics expenditure. And as far as the benefits are concerned delivery staff gets the best part-time jobs and can earn well from the tips they get while delivering. As for the customers they are getting the benefit of ordering the delicacy they want anywhere and can even track their orders. Restaurants can expand their loyalty by showcasing their menus on online platforms.

Post mates cater three areas

  • The customer sector
  • The merchant sector
  • The delivery sector

Customer sector

The customer sector refers to those people who can spend a little more money for the extra convenience they are getting from doorstep delivery. The company focus on hiring those employees that are energetic and can establish customer-employee relationship well.

Merchant sector

This sector covers mostly the vendors of local grocery stores and local restaurants. By partnering with post mates the vendors can expand their market in far areas and get a commission of 15 to 20% from the company. The vendor delivers the product comparatively at less price so that the customer base can remain loyal.

Delivery sector

Post mates made sure that even delivery staff is the fuel of the company under the benefits. They follow the 80:20 ratio where they keep 20%  share of their revenue to themselves and give 80% back to them. Their hourly stipend includes 25 dollars per hour which is quite a lot for any delivery staff.

Working of postmates

Since Post mates is an online company customers have to download their app or open their website to place orders.

As soon as the customer places an order the payment options pop up with a small delivery fee.

On receiving the payments from the customer ends the delivery agent is assigned to the partnered grocery store or restaurant to take the desired product.

The delivery agent delivers the required products while the delivery agent is on his way customers can track their orders to know when their products will arrive. the customers give tips and ratings to the employees which will benefit them in their salary.

How Postmate’s business plan generates revenues?

They charge a delivery fee from the customers. The delivery fee can vary from 3 dollars to 5 dollars depending upon the location of the client and the delivery agent. 

They charge a 9% convenience fee from the customers.

Even they charge delivery cart charges if the order is above 12 dollars.

For their premium customers, they have started subscriptions to unlimited delivery agents. Where the customers get the benefit of no 0 dollar delivery fee if the order exceeds 20 dollars.

The stores that are in partnerships with the company also get the benefit. They get customers from various areas and can even focus solely on their business. They don’t have to supervise the delivery agents.


Post mates have changed the dynamics of online delivery apps. They have the major chunk of the US population. Not only do the customers get the benefit but also the vendors who have allied with them. In such a short period they are giving tough competition to companies such as Zomato, uber eats, etc. Their business plan has made them popular in those areas where delivery was difficult.

Postmates Business Model-Know More

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