Postmates Secures $300M In Venture Funding Led By Tiger Global Management And Announces Record-Breaking Year Of Growth, Accelerating Position As The On-Demand Industry Leader
Sep 18, 2018, 09:01 ET
SAN FRANCISCO, Sept. 18, 2018 /PRNewswire/ -- Today Postmates, the on-demand delivery pioneer, announced that it raised $300 million led by Tiger Global Management LLC ("Tiger"), on the heels of a record-shattering year of growth, market expansion, and adoption of the industry's first subscription service. As part of this round, Tiger Capital's Scott Schleifer will join the Postmates board of directors.
Postmates has established itself as a market leader in the fast-growing on-demand delivery sector, by balancing smart unit economics with a sustainable growth strategy. As the creator of on-demand 'anything,' Postmates gives customers, across 400 U.S. cities and Mexico City, access to over 250,000 merchants with real time deliveries. By creating an alternative infrastructure for local and small businesses to compete against online e-commerce giants, Postmates' technologies boosted local brick and mortar retail sales by 4X1 in 2017.
"The transformation of how commerce moves in cities demands that we build the most innovative tools for businesses to keep up and distribute their products to the modern consumer--efficiently and cost effectively," Postmates CEO and Co-Founder Bastian Lehmann said. "Postmates is proud to be the first and largest on-demand network that is enabling the growth of retail across the country, and today's investment accelerates our ability to pair technology with the vitality of our neighborhoods."
In addition today's funding announcement, the company also announced:
- Gross profit growth averaged over 250% in the past four years while gross margins have improved dramatically to nearly 50%;
- Postmates completes millions of deliveries a month, generating over a billion dollars in gross merchandise volume (GMV) annually and driving profitability in 90% of its markets;
- While the company has attracted investor attention for its sustainable growth strategy across urban centers (including the #1 market share in Los Angeles and other major Southwest markets) it also oversaw the single largest market expansion in the on-demand industry this year, unlocking 131 new urban and suburban cities in one day, and boosting its coverage to 1 in 2 U.S. households in July.
- The on-demand industry's first and least expensive subscription model, Postmates 'Unlimited', also saw record adoption in 2018, with a doubling of total subscribers since 2017. Since it's unveiling, Unlimited has grown 300% year over year, with 1 in 2 orders on the platform now being placed via Unlimited across multiple markets.
The company also expanded its selection reach across top U.S. brands at a breakneck pace this year, by adding Walmart, Chipotle, 7-11, Shake Shack, Blaze Pizza, and Los Angeles and New York sushi hotspot, Sugarfish to its already robust roster of national restaurant and retail partners. With this funding, Postmates will expand its selection advantage; broaden coverage to over 70% of U.S. households by the end of the year; unleash new point-of-sale integration technologies; deploy state of the art API tools (offering white-glove delivery services to non-brick and mortar retail partners at scale); scale social impact investments & new workforce development policies; and invest in cutting edge R&D to devise new last-mile mobility solutions.
To order, visit Postmates.com or download Postmates on iOS or Android. Delivery fees start at $1.99; however, customer can pay zero delivery fees when they subscribe to Postmates' subscription service, Unlimited, which is $9.99 per month or $7.99 per month, when paid annually.
ABOUT POSTMATES
Postmates helps people unlock the best of their cities – and their lives, with an insanely reliable on-demand "anything" network. Launched in 2011, Postmates pioneered the on-demand delivery movement in the US by offering delivery from restaurants and stores previously only available offline. The company now operates in over 400 US cities, as well as Mexico, and provides access to over 250,000 merchants. Postmates is headquartered in San Francisco and has 680 employees. Learn more: www.postmates.com and find our most recent economic impact report at www.postmates.com/impact.
1 2017, Postmates Economic Impact Report co-published with Edelman Intelligence [www.postmates.com/impact]
SOURCE Postmates
