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Postmates Business and Revenue Models Explained

Before we land upon the detailed revenue model and business structure of Postmates, let’s sail through its literal meaning and eye-opening factors. 

What is Postmates?

Postmates is a well-recognized on-demand goods delivery platform operating in up to 100 metropolitan regions in the United States. This app is a medium between local stores and customers to deliver ordered products at their doorsteps. 

 

It may interest you that in 2018, the overall market share of Postmates held 8% of the total food delivery industry in the US. The industry experts predict this market share to go beyond 9% by the end of 2022. 

 

Are you running a product delivery business outside the food industry? And wondering if you can have a progressive share in this market? Well, here’s something to know. 

 

The overall revenue of the platform to customer delivery industry is projected to go beyond US$217.80 billion in 2022. This revenue is likely to grow in the forthcoming years. To be precise, experts say the industry may witness revenue growth of up to 8.55% making it a total revenue of US $302.40 billion by the end of 2024. 

 

Does all this make you get to build & launch an on-demand delivery app for your business?

Let’s watch out for the top 5 On-Demand Delivery Business Models for 2022 to kickstart a successful venture!

 

What Makes Entrepreneurs Curious About Postmates Business And Revenue Model?

Well, the long and short of this question is its unbeatable success rate. The platform is covering almost all industries ranging from grocery to food delivery in the United States. Therefore, industry experts are seen comparing the revenue model of Postmates with other competitors in the market like UberEats, etc. 

 

Postmates well-strategic revenue and business model are evidence enough that it attracts multiple investors consistently. After its inception in 2011, Postmates was able to collaborate with multiple renowned brands including – Chipotle, Apple, Starbucks, and many more. Does all this make you curious to know about its business and revenue model?

Let’s get started with the business model first. 

Postmates business model

How Does It Work?

Postmates follow a straightforward and quick operational flow making it the first choice of millions in the United States. 

 

Step 1- Browse 

Users can explore the complete range of products, categories, and stores to choose from. The app offers a seamless shopping experience accompanied by multiple filters like product type, brand, price, and much more. 

 

Step 2 – Checkout 

Users require to complete the order placement process by ensuring successful checkout. This requires selecting a preferred payment method including – credit/debit card, COD (cash on delivery), PayPal, etc. Also, one needs to enter and confirm the delivery address details at this checkpoint. 

 

Step 3 – Matching 

Postmates initiates and confirms the order pick only when the payment process is completed. It lets Postmates view and receives the incurred delivery charges for the order. As soon as the user makes the payment, Postmates receive a notification indicating to send a delivery boy to the nearby store to pick up the order. This feature brings a sync and encourages 100% transparency among both parties involved (store and the end-user). 

 

Step 4 – Tracking 

Users are able to track the placed orders along with viewing the exact status of the order. The app gives the user complete liberty to connect with the delivery boy via the in-app call & text feature. Furthermore, tipping a postmate (delivery boy) is totally upon the user. 

Postmates Revenue Model – How Does It Work?

If you are considering running a Postmates clone app in the market, one thing you should explore is its revenue model. Postmates’ overall success rate is a clear result of a robust and well-structured revenue model. The most highlighting factor is its multiple revenue generation streams allowing a business to expand progressively. 

 

Key Revenue Generation Streams Of Postmates- 

Merchant Program 

Postmates signs an official merchant program agreement with the local stores. This agreement initiates a collaboration between both the parties (merchant and Postmates). The core purpose of this agreement is to let the store decide and pay a certain share of the overall placed order to the delivery partner (Postmates). All in all, the more the orders, the higher the revenue. 

 

Delivery Staff

Order delivery staff members work as per their preferred time slots and availability. As per the business model of Postmates, the delivery staff members get around 80% of the overall delivery charges incurred by Postmates. As per the company, a delivery boy can earn up to $25 per hour (if delivering orders consistently). 

 

End-Users

The target audience for Postmates-like apps is the one looking out for grocery, food, and other commonly used products in the comfort of their home. However, the customers pay an additional cost of the product in the form of delivery charges. 

 

What Makes Postmates-Like App Stand Out Different & Successful?

If you are someone wishing to kickstart a postmates-look-like business, we have something important for you. 

 

The set of highly interactive features and functionalities of this app makes it stand out in the current marketplace. It focuses on the target audience’s needs and comfort level without burning a hole in their pocket. Maybe that’s why it’s ruling the on-demand delivery service domain worldwide. 

 

Some major highlights of Postmates include – 

  • It lets customers order from anywhere, anytime. 
  • It charges a nominal fee in the form of delivery charges. 
  • Ensures to deliver the order within an hour. 
  • Countless coupons and discounted deals help lessen the overall payable amount for the order placed. 
  • Third-party integrations like payment gateways, and GPS make it a trustworthy platform to consider. 

 

Eager to start a Postmates-like business & accelerate your business revenue?

We at Code Brew Labs hold decades of experience in developing and delivering on-demand food and goods delivery apps in 3 weeks. Moreover, our team of knowledge-rich developers works on the latest technology stack follows the agile methodology, and evaluates your business needs minutely. Thus, you can have a robust final product ready within weeks.

 

As of now, we have served up to 1000 businesses with a reliable on-demand delivery app yet we continue to strive and prove ourselves as a preferred on-demand app development company suiting your business needs. Be it developing and launching a Postmates clone app or developing a new concept from scratch, we have got you covered. 

 

June 28, 2022

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