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A Step-by-Step Guide: How does Postmates Work?

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Harrris Bradley
A Step-by-Step Guide: How does Postmates Work?

Postmates is an application where you can order ‘anything from anywhere’. That is what Postmates endorses, their ability to deliver not only your dinner but anything and everything else you need.

This delivery and logistics company was founded in 2011 by Sam Street, Sean Plaice, and Bastian Lehmann. It has its headquarters in San Francisco, California. Postmates wanted to provide a platform to small businesses to compete with giants like Amazon. With the arrival of such online services, it has adversely affected small businesses. In December 2014, Postmates launched its Application Programming Interface for the merchants to register. This would benefit them by expanding their availability.

Postmates grew immensely in 2015 and now has a large fleet of couriers delivering orders across the US. Let us see how does Postmates work & make money. We will also explore it’s revenue sources and business model.

How Does Postmates Work?

Postmates as an application connects three major groups. The consumers, merchants and the couriers. Let’s understand how all of these are benefitted from Postmates and how does Postmates work for all of them specifically.

Consumers: Consumers are the end recipients and primary users of the application. They place orders and get things delivered to them in an hour. It saves time and effort to go shopping and makes ordering food easier.

Merchants: Merchants of small business and restaurants get exposure through this applications. With Postmates they can reach a wider audience and scale up their sales. These merchants partner with Postmates and complete orders from consumers passing it on to the couriers.

Couriers: Couriers are the people who buy and deliver orders from the merchants to the consumer in an hour. These couriers receive a notification when a consumer places an order and they go buy the items from the stores and complete the order. They receive 80% of the delivery fee and 20% is kept by the company.

How Does Postmates Work For The Consumers?

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Harrris Bradley
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