How Postmates (On-demand Local Delivery App) Has Secured $300M With These 3 Effectual Solutions


This blog reveals information for on-demand delivery startups and entrepreneurs. Read on three effectual solutions by Postmates, which has recently raised funding and become a Unicorn company. Let’s check what’s inside?

It is undeniable that the “on-demand” or “same-day delivery services” has become one of the hottest trends in delivery services. Currently, the items like cooked food, groceries, and liquor deliver the same day services to customers.

Let us check out the market overview first, emerging trends and some implication of on-demand delivery services before diving into the main section.

Market Overview

  • The last-mile delivery services have become important more than anything due to consumers’ behavior. So, with continued growth in diverse sectors like courier, parcel services, home delivery services are the most preferred ones.
  • Talking about the online food delivery business statistics, the revenue in the online food delivery market amounts US$96,235 million in 2018. It is expected to show an annual growth rate (CAGR 2018-22) of 11.1%, resulting in the market volume of US$146,654M by 2022.
  • The largest segment of the market is Restaurant-to-Consumer delivery with a market volume of US$78,734 million in 2018.
  • According to the report from CB Insights, Southeast Asia has become the vibrant areas in the on-demand delivery apps economy.

Emerging Trends & Implications

  • Same-day delivery market: In this image by B.I Intelligence, you can check the rise of same-day delivery services.


  • According to the report from Statista, “The survey took place in North America and Europe in the year 2017, regarding the most common services provided by last-mile delivery.” So, according to this survey, 59% of the respondents provide returns for their last-mile customers. This is what you can see in the image.


Consumers expect faster delivery from their online orders. And, the product categories such as food, consumables, and luxury items are well-suited for same-day delivery services. According to the survey by Stifel Financial Corp., “About 60% of millennials expect same-day delivery as an option with their online purchases. And, more than 60% of consumers are willing to pay more for same-day convenience.

Thanks to on-demand local delivery mobile apps, which have revolutionized this sector. In the world of vibrant on-demand economy, there is a very popular on-demand local delivery app, Postmates, which is at the top and beating its rivals in last-mile delivery services.

After achieving milestones, Postmates has entered a Unicorn club. According to the latest report from TechCrunch, “Postmates, on-demand local delivery app, has secured $300M in Series E round of funding, and valued at $1.2B.” The funding round was led by Tiger Global Management.

Postmates: An On-demand Local Delivery App


Image Source: phillyvoice

An on-demand logistics provider, Postmates, is an on-demand local delivery app that allows app users to order food from restaurants, groceries, and liquor in under an hour. The newly unicorn company, Postmates, has claimed to be the first and largest on-demand network, which is enabling the growth of retail across the country.

San Francisco partially banned delivery robots because they obstructed pedestrians, so Postmates built one with eyes, turn signals and a mandate to yield. Serve is Postmates’ new cooler-meet-autonomous-stroller that it hopes can cut costs and speed up deliveries. The semi-autonomous rover uses cameras and Lidar to navigate sidewalks but always has a human pilot remotely monitoring a fleet of Serves who can take control if there’s a problem. There are even a “Help” button, touchscreen and video chat display customers or passers-by can use to summon assistance.

  • The on-demand local delivery company, Postmates, operates the largest on-demand local delivery fleet in 44 major U.S metropolitan markets.
  • Founded in 2011, San Francisco Bay area based, Postmates has collaborated with Starbucks, Chipotle, 7-Eleven, Walgreens, and Apple.
    The delivery service provider, Postmates, enables its app users to order from any restaurant or store in the cities across the United States and delivers items in just a few minutes.
  • Over the past few months, Postmates delivery app has expanded its services in more than 400 U.S. cities as well as Mexico cities.
  • The company has also announced its partnership with Walmart and Instacart.
  • Postmates has already completed millions of deliveries and it is profitable in 90% of its markets, and gross margins have improved dramatically to nearly 50%.
  • According to the latest report from TechCrunch, “The on-demand food delivery giant, Postmates has launched its food delivery service in 134 additional U.S cities.” However, it has already a presence of 550 cities across the U.S, including Texas, Georgia, Columbia, South Carolina, New York, and Albany.
  • Most recently, the on-demand food delivery app, Postmates has bagged $100M in Series F round of funding, led by Tiger Global Management, BlackRock & Glynn Capital Management.
  • Postmates is launching a new delivery option, called Postmates Party, according to the latest report from The Verge. It allows users to choose to have his/her meal delivered as part of a group.
  • As per another latest news from TechCrunch, Postmates has built one robot with eyes, turn signals and a mandate to yield. Known as Serve, it is Postmates’ new cooler-meet-autonomous-stroller that it hopes can cut costs and speed-up deliveries. This robot makes use of cameras and Lidar to navigate sidewalks, but it always has a human pilot remotely, that is monitoring the delivery of it.


  • According to the report from SimilarWeb, Postmates app is ranked #13 at Google Play Store.


3 Effectual Solutions by Postmates to be Considered While Developing an On-demand delivery App

1. Deliver Products Just the Way Your Customers Want it


The on-demand delivery apps based specifically on delivering products like cooked food from restaurants, groceries items, and liquor within an hour. As we have already mentioned that consumers expect faster delivery when it comes to local on-demand delivery of products.

One of the important solutions, which you can pick from this Goliath is to deliver services as per your customers’ expectations. To make your services effective, as a startup, you need to come up with the solutions as what your customers expect in their daily lives schedules. You need to build an on-demand local delivery app, which distributes products as per users’ convenience and at affordable costs.

If you are planning to create an on-demand local delivery app like Postmates, then it is important to offer solutions, considering modern consumers in mind. Make sure to provide solutions as what suit on their busy lives schedules.

2. Convenience is the Key


Image Source: postmates

Convenience is the key, especially in cooked food delivery and groceries. After providing flexible delivery to your modern consumers in the on-demand local delivery services, the next thing is to provide convenience to your consumers. And, of course, it is the key, which you can provide to your consumers in the on-demand delivery app like Postmates.

You might have heard this a lot of times “on-demand provides convenience” and it is one of the key factors, which can take your on-demand delivery business to the next level. In the on-demand delivery businesses like Postmates, the potential is providing convenience to modern consumers.

So, if you are planning to make on demand delivery app for your business like Postmates, then don’t forget to one of the evergreen solutions i.e. convenience.

3. Diversifying Your Services


Image Source: postmates

To become successful in on-demand delivery services, it is important to diversify your services. From cooked food from nearby restaurants to groceries from the supermarkets, you can expand your services or we can say, diversify your services. For instances, the on-demand delivery app like Postmates has allowed ordering liquors on-demand via an app. So, in order to diversify your services, you need to check the following key factors:

  • Sell as what your rivals not yet have delivered.
  • Decrease the time of delivery.
  • Provide an option to order on-demand liquors directly from the app.

Diversifying your services is one of the strongest growth strategies and the most effective solution, which you can consider while developing an app under the category of on-demand solutions.

The Competition in On-demand Local Delivery Apps

Apart from Postmates, here are some other on-demand local delivery apps, which are recognized as rivals of Postmates.

  • DoorDash
  • UberEats
  • Eat Purely
  • Instacart

The Bottom Line

If you are one of the on-demand delivery startups, who are thinking to dive into the world of on-demand economy, then it is a high time to develop an on-demand local delivery app like Postmates.

Apps like Postmates are giving the new opportunities to on-demand delivery startups, and if you as a startup would concentrate on developing an on-demand delivery app, then by considering aforementioned solutions you can scale your business faster and see outstanding results.

If you are having an app idea on the on-demand local delivery apps like UberEats, Postmates, DoorDash or Instacart, then you can cross-verify it with us as we are a leading Android/iOS app development company and have already developed over 3500 mobile apps in diverse categories.

In case, if you still have any query or confusion regarding online food ordering system, on-demand delivery app development or the on-demand delivery app development cost breakdown, Indian app developers cost or how long does it take to create an app, then you can get in touch with us through our contact us form. One of our sales representatives will revert to you as soon as possible. The consultation is absolutely free of cost!

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This page was last edited on May 7th, 2020, at 6:32.


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