Many companies and growing start-ups who are looking forward to venturing into the on-demand delivery space are curious to know how Postmates works. For more information, read our blog! https://ideausher.com/blog/how-postmates-works-business-model-and-funding-timeline/

1. How Does Postmates
Work?
Business and Revenue
Models Explained.

2. What Is Postmates?
Postmates is an on-demand delivery company that
provides delivery services across all 50 states in the U.S,
including Washington D.C. It offers a platform that connects
customers and merchants and delivers the products right
at the buyer’s doorstep with Postmates or local couriers’
help.
Here’s the interesting part - Postmates is not only an Uber
-like service anymore. On 1st December 2020, Uber officially
completed the Postmates acquisition and settled the deal
at $2.65 Billion.

3. The platform has over 600,000 restaurants and retailers
(local and national)
It has employed approximately 700,000 couriers to deliver
orders.
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Salient Features of Postmates
It offers a subscription model for $9.99/month (15% off on
the annual plan) that
offers free delivery on orders above $12.
Customers can track their orders in real-time and stay
updated on their order deliveries.
Postmates Pickup feature helps customers opt for takeout
orders.
The platform includes top restaurants and food-chains
such as McDonald’s, Taco Bell, Chick-Fil-A, etc.
It has employed approximately 700,000 couriers to deliver
orders.

4. 5-step Postmates Business Model
Browse Restaurants and Retailer Stores
The customers can view all the restaurants and stores
available and choose their preferred product from nearby
ones.
Tracking Order
Once the customer has made the payment, they can
track their order in real-time.
Checkout and Payment
After the users have specified the details, they can checkout
and make the payment through the application.
Matching with a Courier
The nearest delivery person confirms your request, shops
for your items and delivers them to your doorstep.
Rating and Feedback
After the customer receives its order, they can rate the
delivery person and their overall experience.
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5. Revenue Stream of Postmates
Delivery Fee
The standard delivery charge ranges from $3 to $5.
Postmates keeps 80% of the delivery fee while the
remaining 20% goes to the courier.
Tracking Order
Once the customer has made the payment, they can
track their order in real-time.
Merchant Programme
Convenience Fee
As customers get their products right at their doorstep without
leaving their house and spending fuel, they are charged a
convenience fee amounting to 9% of the total order.
Rating and Feedback
After the customer receives its order, they can rate the
delivery person and their overall experience.
Postmates lets restaurants and retailers display their products on the app and
charge a commission in return. The revenue-sharing agreement mentions the
commissions, which entitles Postmates to a percentage of the product’s price.

6. Registration and Log-in
Restaurant and Store Listings
Checkout and Payment
Order Tracking
Feedback and Rating
Customer App
How Does The Postmates
App Work?

7. Profile
Order Management
GPS Tracking and Status of Delivery
Driver App

8. Registration/Log-in
Update Details
Track Feedback and Rating
Merchant App

9. CONCLUSION
After having gone through the overview of Postmates, I am sure you must have
understood how Postmates works.
If you’re looking forward to creating your food delivery app, we are here to offer you top-tier mobile solutions
that will make you stand out from your competitors.
Contact us and get started with your project
www.ideausher.com +1(559) 721-0509 contact@ideausher.com