Postmates
| File:The logo for Postmates.svg | |
| Company type | Subsidiary |
|---|---|
| Industry | Logistics |
| Founded | May 1, 2011 |
| Founder | Bastian Lehmann Sam Street Sean Plaice |
| Headquarters | San Francisco, California, United States |
Area served | Selected cities across the United States |
Key people | Bastian Lehmann (CEO) Sean Plaice, Kristin Schaefer (Management Team) Nabeel Hyatt, Brian Singerman, Khai Ha (Board Members) |
| Products | Mobile app, website |
| Services | Delivery (commerce) |
| Revenue | US$1 billion (2018) |
Number of employees | 5,341 (2019) |
| Parent | Uber |
| Website | postmates |
Postmates Inc. is a U.S.-based food delivery platform established in 2011 and later acquired by Uber in 2020. Its headquarters are located in San Francisco, California, and it specializes in delivering meals prepared by restaurants as well as various other items within local markets.
By early 2019, Postmates was active in 2,940 cities throughout the United States, competing chiefly with companies such as Grubhub, DoorDash, and its affiliate Uber Eats. The company has encountered legal scrutiny concerning accusations of anticompetitive pricing practices.
History
Postmates was initiated in 2011 by founders Bastian Lehmann, Sean Plaice, and Sam Street. In December 2014, the company introduced an API that allowed merchants to provide local delivery services, enabling smaller enterprises to challenge larger competitors like Amazon.
The service expanded internationally to Mexico City in November 2017 but withdrew from that market by December 2019 to concentrate on growth within the United States. In 2018 alone, Postmates extended its reach to 134 additional U.S. cities, totaling service availability in 550 locations.
On December 13, 2018, the company revealed plans to develop an autonomous delivery robot as part of its commitment to innovation.
Funding and acquisition
Postmates secured over $800,000 in initial funding through the AngelPad accelerator program in 2011.
A $300 million investment round led by Tiger Global Management took place in September 2018, valuing the firm at $1.2 billion.
By January 2019, the company raised a further $100 million from investors including BlackRock, Spark Capital, and Founders Fund, which elevated its valuation to $1.85 billion.
In September 2019, GPI Capital spearheaded a $225 million funding round; Managing Partner Khai Ha subsequently joined Postmates’ board.
Ultimately, Uber purchased Postmates for $2.65 billion in December 2020, broadening its presence and influence within the global food delivery sector.
Compensation model
In May 2019, Postmates altered its payment framework for couriers by eliminating the $4 minimum per delivery guarantee, adjusting the base pay rate, and lowering the per-mile compensation in certain regions. The labor organization Working Washington, affiliated with SEIU, encouraged couriers to boycott Postmates assignments. In response, the company justified these modifications by highlighting gains in operational efficiency and emphasized that couriers retain all tips without those tips being factored into other earnings calculations.
Claims of monopolistic conduct
In April 2020, residents of New York initiated legal action against DoorDash, GrubHub, Postmates, and Uber Eats, alleging that these companies exploited their market dominance by mandating restaurants to keep prices uniform for both dine-in and delivery patrons. The plaintiffs asserted that this practice effectively makes dine-in customers bear the cost of delivery services, while the platforms impose commissions ranging from 13% to 40% of restaurant sales—significantly surpassing the usual profit margins of 3% to 9% for restaurants. The lawsuit, filed in the U.S. District Court for the Southern District of New York under the case name Davitashvili v GrubHub Inc., 20-cv-3000, seeks triple damages for alleged overcharging dating back to April 2016.
According to the plaintiffs, these contractual agreements restrict market competition and force restaurants to increase their prices in order to offset steep commission fees, adversely affecting both consumers and dining establishments. In March 2022, U.S. District Judge Lewis A. Kaplan rejected the defendants' request to dismiss the lawsuit.
See also
External links
- Pages with broken file links
- 2011 establishments in California
- Online food retailers of the United States
- Companies based in San Francisco
- Logistics companies of the United States
- Transport companies established in 2011
- American companies established in 2011
- Retail companies established in 2011
- Internet properties established in 2011
- Online food ordering
- 2020 mergers and acquisitions
- Transportation companies based in California
- Uber acquisitions
- Companies of the United States by year of establishment
- 5