Get a demo Do I subscribe? News sign-up
Print

Postmates champions on-demand economy

News, 27 May 2015

NEW YORK: Postmates, a delivery company currently working with partners like Chipotle and McDonald's, believes the on-demand economy is now gaining more recognition among major brands.

Bastian Lehmann, Postmates's co-founder/ceo, discussed this subject at the TechCrunch Disrupt NY 2015 conference.

With a fleet incorporating over 10,000 couriers, who carry orders to consumers' doorstep in under an hour, Postmates is active in 26 cities across America and has made in excess of two million deliveries to date.

And the company is also currently handling deliveries for Chipotle, the Mexican restaurant chain, in 67 locations, alongside undertaking a test program for several McDonald's quick-service outlets in New York.

"Larger brands realise that this market of same-day delivery has been created, there is an infrastructure like Postmates in place, and they want to see if they can utilise that same infrastructure," said Lehmann. (For more, including details of the firm's "bottom-up" and "top-down" models, read Warc's exclusive report: How Postmates spreads the word about on-demand delivery.)

Postmates was founded in 2011 and has since expanded its geographic reach, built up its fleet and refined the algorithm which maps out the optimal route for deliveries.

"What's going to happen is that people will understand that the market is now created, and, all of a sudden, it seems, Postmates is a large player in it," said Lehmann.

"For us, it's just continuous work over the last three years. But [for] a lot of people, because they start noticing [the] trends now, Postmates just appears."

While Postmates is one of the leading players in this space, competition may well intensify, with CrunchBase estimating that the industry attracted $1.28bn in investment during the first four months of 2015.

That total surpassed the comparative figure generated throughout all of 2014 –and corporate giants such as Google, Amazon and Uber are also expected to ramp up their own efforts.

Lehmann, however, suggested that Postmates possesses the advantage of already having tackled logistical issues which are essential, and highly complex, components of the on-demand economy.

"I think it is very challenging to build an on-demand logistics platform in the first place," he said.

"The beautiful thing about what we did at Postmates is that we could do it for two or three years when not many people cared about the market."

Data sourced from Warc