How is that!! When there is someone to get things done and delivered at your doorstep… Don’t you feel it angelic? A group is on the rise at your nearest proximity to serve you better while you demand. Let’s dig in deeper to understand how it works to make our lives much easier. Postmates is one of a kind that took its inception on May 1 2011, to fetter technology, logistics and human courier network to enable people to order anything that they want from any store in the city.
Postmates is an on-demand goods delivery Service Company that has disrupted the technology revolution to heights to deliver goods on a sundry to people customers on demand.Isn’t it making life simple? GPS coupling with smartphones stands a best combo to source out such outstanding business models. Postmates make the best use of technology –The order placed by the customer is notified through the mobile device, and GPS is exploited by the company to match the requirement and service them in a wee time.
Postmates have obtained a sumptuous amount of funding from investors that has given way for the company to amass a mammoth customer base in no time. Born in 2011, Postmates hit huge success in a quadrennial span of time. The on-demand service giant is now on a business alliance with McDonalds, Apple, Walgreens, Starbucks, Chipotle and what not in the fortune company
Postmates is mutating the courier system – by connecting anyone around the city to fetch you a product and delivered it to you in an hour’s time. The novel logistics on-demand system defines the world to be your courier network.
Facts and Figures
Postmates is one of a kind that took its inception on May 1 2011, to fetter technology, logistics and human courier network to enable people to order anything that they want from any store in the city.
- Founded by: Sam Street, Sean Plaice and Bastian Lehmann.
- Company Headquartered at: San Francisco, California.
- Funds received by Postmates: As of November, 2015 – $138M
- Business Valuation: $500 M
- Orders Processed on a Daily Basis 7500 orders processed as of 2015
- Standard Order Size: $40
Remarkable Features of Postmates
- Enables people to order anything from anywhere within the city.
- Postmates charges a nominal delivery fee which depends on the distance covered from pick up point and drop off point.
- Special featured stores.
- The delivery guys or couriers who work with postmates are also called postmates.
- Deliveries are made within 1 hour.
- Postmates is available 24 hours a day and 365 days a year.
- The minimum delivery fee is $5 but often there are offers in particular areas with even lower delivery fee.
- Customer can track the location of the delivery guy after placing the order.
- Kitchens housed in all locations
- Visiting city’s top-rated chefs
- Menu changed on a daily basis
- Well proficient resident chefs
- Part time manpower for deliveries
Postmates operates on a Quaternary step model
Know the requirements
The curtain raiser for postmates’ business model is that the customers to know the requirements and establish the order. Customers can use the desktop or the smartphone app to place the request and get it at their doorstep.
Mode of Payment
An order is confirmed at postmates only on payment. The factual price of the requested product is added along with the delivery fare which is based on the pickup and drop location. The postmates handle the payments.
The Matching Mechanism
Once the order is confirmed, information is passed to the postmates who are positioned closest to the store that serves your demand. The postmate then shops your needs and gets it delivered at your door step in an hour either by bike or car. The matching is done between the customer and postmate such that he will be able to deliver the demand within the stipulated time of 1 hour.
Tracking Receiving Order and Tips
One spectacular feature pinned to the business model is that the customers has access and track the whereabouts of the delivery guy as to where he is during the process of shopping the order until he reaches your doorstep. Postmates have an option to text the customer in case of any delay. Customers are free to tip the postmates as per their convenience. It is not a hard and fast rule for the customers to tip the postmates. However most of the customers try to be good to postmates and tip them on most of the orders.
A business is known to be successful when it has a strong bonding with customers, so as to retain them with efficient business strategies. Customers are one source of advertising – if you satisfy your existing customers, they share their experiences with their friends and family – this involves the art of “Word of Mouth”, where the formula works to help you build your business better while existing happy customers promote your business and bring in new customers.
Postmates have definitely outplayed customer relationship and it totally abides by the following saying:
One Customer Well Taken Care could be More Valuable than $10000 worth of Advertising – JIM ROHN
Social Media: Tell about your business through social media. Share latest deals and discounts and new arrivals through the social media platform to reach out to your customers. Postmates exploits Social Media at the right way.
Customer Support: Retaining customers is no small feat, Postmates is backed up by an efficient customer support team to help customers with answers to their queries and with solutions to their issues.
Review, Rating & Feedback System: A perfect review, rating and feedback system is all what Postmates have worked on to help them understand the shortfalls of the business and also most importantly to help other customers to understand how Postmates has business is servicing its customers – provoking them with a let-me-try thought.
Postmates caters 3 different customer segments
Customers: They are people who are convinced to pay extra than the actual price of the ordered product as they are at ease while the product is delivered at the doorstep.
Merchants: Postmates partner with merchandisers and connects them through a medium with people who demand goods to be delivered at their door step. Merchants tip a percentage of the order bill value to Postmates for their doorstep delivery service. Merchants find it economical to share a percentage of the purchased good to the delivery network than to hire an employee of their own to deliver the goods to their customers.
Courier Personnel: People who are looking out earn extra money to their pocket as per their convenient schedule can be a part of the human courier network. The delivery personnel are called postmates. The business model follows a share math with 80% of the delivery fees to the delivery guys and 20% of the fare is to the company’s deep pocket. As per the postmates’ payment schema, a delivery guy can earn up to $25/hour.
Postmates have done a good homework to furnish logistics on user’s demand – this stands a value proposition to customers. The business model provides remarkable value propositions for its customer segments that accommodate customers, delivery personnel as well as local store merchants.
Values to Customers:
- Customers are good to order anything from local stores
- Postmates are available 24/7/365
- Orders are delivered at the doorstep within a hour
Values to Store Merchants:
- Store merchants get an enlarged customer base
- They are good to serve their regular customers through Postmates
- They are to pay an affordable commission to postmates delivery guy
Values to Delivery Guys:
- Flexible work timings
- 80% of the delivery charges are paid to the delivery
- Earnings are directly proportional to the number of deliveries the postmates intend to take
Revenue Model that unveils the Success Story
- To any start-up-to-be business teams, revenue model are to be framed with much prudence looking at it with futuristic approach. Revenue is the result to prove the success rate of any business. Postmates look at its revenue model as a mainstay for the company’s outplayed success.
- You mediate between customer segments; while you earn your commission through each of the customer segments is the effortless revenue plan hacked by the postmates.
3 Sources of Income
- Delivery Fee
- Convenience Fee
- Merchant Agreement
Delivery Fee: Postmates put a price on customers who demands an order to be delivered at their door step. The delivery charges start from minimum $5 and could be a bit high depending on the location and could be priced less in relevance to offers. 80 % of the fee goes to the courier guy while the remaining 20% is the revenue outcome of postmates.
Convenience Fee: A 9% convenience fee is priced for each order that the customers are more than happy to afford as they could get their orders delivered at their doorstep
Merchant Agreement: Postmates partner officially with the local store merchant under a roof of the agreement. The deal’s intent is that the local store merchant has to pay a percentage of the order bill to postmates that add up to the revenue.
Postmates have raised curtain to the new trending logistics industry housing delivery personnel to deliver the order on demand. The business layout creates a novel approach to service customers at its best. Postmates business and revenue model is certainly one of the pilot systems of on-demand delivery industry that survives with the software application interface to process speedy delivery to the specific customer, on-demand.