Postmates Announces Free Delivery for Unlimited Members, Drops Service Charges
The delivery service is ditching extra fees in favor of flat rates for 12,000 businesses.
It used to be that on a cold and rainy night you could only order a pizza or some chop suey. And even then, that was only if you happened to lived near enough to a restaurant that offered delivery. But with deliver-it-all companies like Postmates, which launched in 2011, that scenario has become a long-forgotten memory.
The on-demand delivery platform, that makes it possible to get anything from marshmallows to sushi, to cheesecake, to beer (we could go on) anywhere and at any time (or at least within 35 minutes on average) just got a little more convenient. The company, headquartered in San Francisco and connected to over 250,000 brick-and-mortar merchants, just announced that its unlimited subscription service, which costs $9.99 per month, will now also include free delivery. For the non-unlimited customer, the company ditched service fees and will offer a $3.99 flat-rate for orders from 12,000 in-network partner merchants.
Postmates launched a pilot loyalty program in April of 2016, and it seems to have worked out. The company reports that it has consistently added over 50,000 new subscribers per month, completes 2.5 million deliveries in the same time, and once users become unlimited members, their ordering habits increase by 50 percent. According to a statement from Postmates, these loyal members see the service "not just as an app, but as a way of life.” The company also stated that “by introducing lower pricing, we hope to introduce even more people to our service and make Postmates a verb—for everyone, everywhere.” Is Postmates becoming the new Google? Even competitors like Amazon and GrubHub aren't a verb yet. Either way, the company sees itself as “building a movement.”
Based on that, it's clear Postmates is in it for the long haul, seeking to gain “more value for customers over a lifetime.” If you're not convinced to sign up already, we have five reasons apps like Postmates are changing some cities' food scenes for the better.