TECHNOLOGY

Postmates responds to demand for on-demand delivery

BY Dan Berthiaume

On-demand delivery service Postmates is adding new markets.

Postmates is launching in 1,000 new cities across the U.S., bringing the current total to more than 3,500 cities across all 50 states. With this expansion, Postmates now serves more than 70% of U.S. households.

Postmates specializes in fulfilling online delivery orders within minutes. While the service will deliver any product, it mostly partners with grocers, including Walmart, convenience stores, and restaurants. To celebrate its new expansion, Postmates is offering a national promotion in partnership with Subway, offering $5 off any sandwich with a minimum $10 order.

“We want to enable anyone to have anything delivered on demand and this latest expansion allows us to deliver on that promise across all 50 states in the U.S.,” said Bastian Lehmann, co-founder and CEO, Postmates. “Now more than 70% of U.S. households can take advantage of our industry-leading merchant selection and our innovative products like Postmates Party.”

A new consumer study from The Retail Feedback Group shows 12% of respondents order groceries online for delivery or pickup. However, some customer demographics are more likely to place online delivery for orders, such as urban residents (18%), millennials (18%), annual income over $100,000 (15%), and household size of three or more (17%).

Postmates provides on-demand delivery from more than 500,000 restaurants, grocery and convenience stores, as well as traditional retailers. Customers can place orders from the Postmates website or mobile app, and either pay a delivery fee or join the Postmates Unlimited subscription service on a monthly or annual basis.

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