{"id":36902,"date":"2022-01-19T15:26:14","date_gmt":"2022-01-19T09:56:14","guid":{"rendered":"https:\/\/appscrip.com\/blog\/?p=36902"},"modified":"2025-02-25T11:59:56","modified_gmt":"2025-02-25T06:29:56","slug":"how-does-postmates-work","status":"publish","type":"post","link":"https:\/\/appscrip.com\/blog\/how-does-postmates-work\/","title":{"rendered":"How Does Postmates Work After Uber Postmates Merger?"},"content":{"rendered":"\t\t
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A decade or so ago restaurant meal delivery meant pizza or Chinese.<\/span><\/strong><\/p>\n

COVID-19 has now diametrically changed how the world eats. Globally the food delivery niche has grown to a $150 billion worth industry, which is three times of what it was in 2017.<\/p>\n

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The dawn of alluring tech-enabled driver networks, user-friendly apps, and changing consumer expectations birthed food delivery as a major category.<\/p>\n<\/blockquote>\n

Lockdowns and physical-distancing during the pandemic gave this category a much needed boost, with delivery becoming a lifeline for the aching restaurant industry. The foodie landscape is poised to have this development as a permanent attribute.<\/p>\n

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Normalized Delivery Platform Sales Growth<\/strong><\/figcaption>\n<\/figure>\n

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Even though restrictions for the pandemic will vanish one day, this newly established delivery culture could stay as a lifestyle for consumers. Customers have got used to getting lots of stuff brought to them, hence they will in all probability clutch on to this custom. This would be in spite of having the alternative to shop again freely.<\/p>\n

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Postmates History<\/strong><\/h2>\n

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Postmates\u00a0was founded in San Francisco in 2011. The app is designed to get you food and other essential services delivered at an address of your choice.\u00a0This idea predated the smartphone, but the company’s ability to raise an app helped them survive and be copied by others eventually.<\/p>\n

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World Food Delivery Apps Revenue Sources: McKinsey, Morgan Stanley<\/figcaption>\n<\/figure>\n

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Postmates isn’t just food delivery. The idea behind Postmates is having anything delivered to you. Let’s check how does Postmates work. Takeout is their bread and butter, but you could also get deliveries from grocery stores, pharmacies, electronics and liquor stores. This depends on where you live and the nearby stores that are affiliated to the firm.<\/p>\n

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Sizing The Market<\/strong><\/h3>\n

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The most mature delivery markets include Australia, Canada, the UK, and the US. The US market grew twofold and Australia fourfold in 2018 and 2019 respectively. This massive growth continued through 2020 and into 2021. Now these markets have matured by 4 – 7 times in comparison to 2018.<\/p>\n

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\"How<\/figure>\n

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The market in US has more than doubled during the pandemic at a growth rate of 8%. Bulk of this increase came at the expense of the grocery sector. This was primarily because the millennials and the Gen Z preferring delivered meals<\/a> over cooking.<\/p>\n

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This trend towards convenience has grown, thanks to the pandemic. The food-delivery market spiked between March and May 2020 when lockdowns in Europe and the US were the most severe. It has maintained that trajectory into 2021.<\/p>\n

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The Business Model<\/strong><\/h2>\n

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The working of Postmates is pretty straightforward. The user orders from within the app after scouring through various food choices and restaurants. After completing the payment or choosing ‘pay during delivery’<\/a> the order is complete. Now a Postmates appointed driver would collect the order from the restaurant and deliver to the users\u2019 doorstep.<\/p>\n

How Does Postmates Work<\/h3>\n

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The monetizing part of Postmates is:<\/p>\n

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