While Uber may have made a serious grab for the crowdsourced delivery market in the last year with their Uber Eats solution, there is another distributed driver delivery service that has been quietly building momentum in the sidelines for the last five years, and now is set to take center stage.
Postmates, founded in 2012, has experienced a slow burn in popularity that has established a powerful foundation from which it is making a concerted attack on the mainstream. In the first two years of operation, Postmates achieved only two million deliveries- now, in the first quarter of 2017, it has achieved a delivery rate exceeding twice that every month.
In this article, we’ll take a look at the Postmates solution, find out how it works, and learn about the origin of this delivery service success story, as well as providing a little bit of insight into what it’s like to work both with and for this unique delivery solution.
What is Postmates?
Postmates is the brainchild of CEO Bastian Lehmann, who came up with the original idea for the Postmates delivery service back in 2005. While relocating from Munich to London, Lehmann identified a serious lack of distributed, easy to access solutions for moving goods across a city.
The first proof of concept of Lehman’s peer-networked “ride sharing for stuff” delivery service was launched in the form of AngelPad in the late 2000’s, which operated in San Francisco and created the base for what Postmates is today.
The AngelPad platform was met with great success, and, enlisting the assistance of co-founders Sean Plaice and Sam Street, Lehmann set out to expand the platform into what is now the Postmates delivery system, which operates in over 40 markets in the United States.
The Postmates operation is simple- the platform allows users to have absolutely anything delivered on demand through a network of independent drivers using their own vehicles in a similar manner to Uber.
Stating their mission as “transforming the way goods move around a city”, Postmates operates a comprehensive urban logistics platform that not only allows private individuals and companies to transfer goods between themselves quickly and easily, but also connects with local courier services and freelance drivers to partner with restaurants and meal delivery services, providing near-instantaneous delivery in minutes.
Despite the high convenience factor and popularity of the Postmates brand, it has taken some time for the creators of the platform to reach a point of profitability. In a recent interview with Forbes magazine, Lehmann stated that there are still many things within the company that need to be optimized.
Despite the ongoing process of refinement that is building the Postmates brand, the company holds a strong position in the distributed delivery market, and is expanding into the small business sector by offering business owners the ability to manage their logistics through a custom built Postmates API.
Postmates has launched a number of initiatives in the last year that increase the convenience factor and market penetration of the brand. In January 2017, the platform launched alcohol delivery services in Los Angeles and San Francisco, diversifying the delivery portfolio of the company that currently consists of 80% food deliveries.
How Postmates Works
From the consumer perspective, using Postmates is extremely simple. Users download and install the Postmates app, and after selecting which restaurant and food they’d like to order, they share the specifics of their order with the app. After confirming the order, users are given an order summary and an estimate of the time it will take for their order to reach them.
Live updated map tracking of the delivery process is available via the app, which is provided by a live connection to the Postmates driver that is delivering the order. When the driver approaches, the users is contacted via text or a phone call to arrange the specifics of the pick up. Similarly to Uber, Postmate users are able to give feedback to drivers via a simple and quick rating system.
The Postmates system comes with a small charge- depending on the distance from the restaurant and the time it takes to deliver the order, it usually comes out to around $5. In addition to the delivery fee, there’s a 9% service fee, as well as the option to tip the driver, which can be customized, but suggest between 10% and 20%.
Postmates Plus & Plus Unlimited
For frequent Postmates users, the company offers a Postmates Plus and Postmates Plus Unlimited subscription option. The basic Postmates Plus system offers direct access to over 40,000 merchants offering a broad range of products and services, with immediate order acceptance.
The Postmates Plus Unlimited service, however, offers a significant boost in economy. Priced at $9.99 USD monthly the Plus Unlimited Service offers free delivery on all Postmates Plus orders over $25 USD, with no service fee, meaning there’s no extra 9% charge. Plus Unlimited users are also placed first in line during busy peak hour order queues and never charged surge pricing.
Working For Postmates
Like Uber, Postmates make working for them easy, simple, and profitable, in addition to offering free Postmates Plus Unlimited subscription services. Postmates drivers are able to earn up to $25 USD hourly while working on their own schedule, while using their own form of transportation.
Unlike Uber, it’s not necessary to own a car to get on board with the Postmates movement- Postmate couriers are able to walk, drive, scoot, and even ride bikes to deliver for the platform, making it far more accessible and cost-effective.
Postmates Review: The Verdict
Postmates, while having been in the delivery game longer for Uber, is only beginning to see a significant amount of market penetration. Despite the only recent surge in popularity, Postmates is incredibly cost effective and offers some of the most competitive delivery rates in the market through its Postmate Plus Unlimited service.
If you’re looking for a low cost, reliable, and fast delivery service, or are seeking a way to break out of the 9-5 and become your own boss as a courier driver, the Postmates solution offers a wide range of advantages over Uber and Uber Eats that can’t be ignored.
