With the instant rise of eCommerce, no one needs to leave their house for any kind of purchase. You can simply order them online and get delivered at your doorstep.
Companies like Postmates were born according to the advancements in technology. Postmates has the ability to order anything online. It can be food, groceries, drinks, electronics or anything, you will get it within minutes. It is an evolutionary process of the eCommerce world. Currently, Postmates is serving more than 100 cities in the USA.
Considering the benefits and demands of on-demand delivery apps, we have analyzed the working of Postmates, its business model and unique selling points for you.
What is Postmates?
Postmates is an on-demand delivery app that allows customers to order anything from anywhere in the city. It is a unique on-demand delivery service provider with a unique way of delivering goods when compared to other service providers.
The business model of this on-demand goods delivery platform is similar to Uber. Postmates couriers get order notification on their mobile device and GPS is used by the company to find the shortest possible time.
Postmates was launched in 2011 and in a short span of 4 years, it made a great success. Major business models like Apple, Mcdonalds, Starbucks, Walgreens, Chipotle and many other well-known companies have collaborated with Postmates.
The vision of Sam Street, Sean Plaice and Bastian Lehmann was to allow anyone to have anything delivered on-demand. Postmates encourages people to support their economy by shopping from local stores.
The rapid growth of Postmates expands them across the nation. Postmates are looking for new innovative ways to provide a remarkable service for its users.
This on-demand startup is offering two options to its customers:
Delivery: You can order anything within your city and get it delivered in an hour at a normal fee.
Pickup: Postmates Pickup service lets you place an order and you will get notified once the food is ready. Then pick it up from the restaurant.
What are the features of Postmates?
From the beginning itself, the business model of Postmates was to make it stand out. The app made it within 4 years because of its unique features. The features that made them stand out in the market are:
- People can order anything from anywhere in the city
- Its delivery fee depends on the distance between pick up point and drop point.
- Postmates offers special featured stores
- They have the ability to deliver the product within an hour
- The pay structure of Postmates attracts most of the users. Its minimum delivery fee is $5.
- Customers can track the location of the delivery guy through GPS to know how far is their product.
In a Postmates app, there are 4 parts. See the feature set of Postmates app:
- Restaurant Side
- Customer Side
- Delivery Person Side.
- Admin Side
|Restaurant Side||Customer Side||Delivery Side||Admin Side|
|Menu Management||Search Menu||Order Management||Restaurant Management|
|Push Notification||Cart||Updating the order status||Application Management|
|Checking rating and review||Payment Integration||Payment Management|
|Order Tracking||Discount Offers and Coupons|
|Rating and review||Technical Assistance|
Postmates Business Model
The business model of Postmates offers magnificent value propositions for customers, merchants, and delivery persons.
Customers: These are the customers of the web and mobile app who either make a delivery or pickup request.
- Customers can order anything online from local stores
- Postmates is available for 24 hours and 365 days
- Get delivered within 1 hour
Merchants: These are the local merchants partnered with Postmates to have better aspects of products and services.
- Extended customer base is available
- They can serve their own customers
- Merchants are provided with online visibility
Delivery Persons: A Postmate is the delivery person or human courier who partners with Postmates for product delivery.
- They can work when they receive any order
- Delivery guys will get 8% of delivery fee
- When they make more deliveries they can earn more.
Working of Postmates
To become a Postmates user all you have to do is download the Postmates app, select your location and register payment details then you can go through different shopping options. If you are searching for something specific then you can search by name of local businesses.
Here is the delivery model of Postmates explained step by step:
- Browse: Postmates has the list of almost every local merchants on its platform. Using the Postmates mobile app or website customers can browse the stores and place an order.
- Payment: Payments are received only once it is paid. The delivery fee will be added to the total bill depending on the pick-up and drop off distance.
- Match: When an order is confirmed, notification along with the details of the product will be sent to the delivery guy. He will collect your order and delivers it at the user doorstep within 1 hour.
- Track: The customers are notified when delivery guy reach the restaurant and collect their order. They also have the option to send feedback after receiving the purchased product. Moreover, the customer can track the delivery guy’s location in real-time.
- Tip: When the delivery guy delivers the order within an hour, the customers can rate and tip the delivery guy.
How Postmates earn revenue?
Every business needs a strong revenue model for its success. If you are planning to start an on-demand delivery business the main thing you have to focus on is the revenue model. The reason behind the success of Postmates is its strong and strategic revenue model. Let’s have a look at how Postmates earn money.
The revenue streams of Postmates are:
Delivery Fee: Users have to pay $5 as a small delivery fee. During some occasional offers, the delivery fee will be reduced to $3. However, 80% of the delivery fee will go to the delivery guy and 20% goes to the Postmates revenue.
Convenience fee: Postmates have a flat fee of 9% as a convenience fee. People are happy to pay this convenience fee in order to get goods delivered at their doorstep. This fee goes straight to the Postmates revenue.
Merchants Fee: Postmates have launched a merchant program to collaborate with local stores. The purpose of this collaboration is to sign an official agreement. According to the agreement the store has to pay a certain percentage of the total bill to the Postmates. Hence it benefits both as merchants get an extended customer base and Postmates get paid by merchants.
Small Cart Fee: If the purchased product of the customer doesn’t reach a minimum price then a small cart fee of $2 is charged.
How to build an App like Postmates?
Do you have a similar idea of an on-demand delivery app? or Are you planning to create another Postmates?
It is difficult to give the app development cost range of Postmates. It depends on the set of features, size of the team, technology stack, etc.
Postmates have learned how to win the hearts of users. Do you want to create something like Postmates? We have an on-demand service marketplace to support you. So don’t wait for a second thought. Let’s build it.