Major Funding & Growth Milestone Puts Postmates on New Trajectory
By Bastian Lehmann, Co-founder and CEO of Postmates
To deepen our position as the on-demand industry leader, today, I am pleased to announce that we’ve raised another $300 million in funding, led by Tiger Global Management. The growth round capitalizes upon the record-breaking momentum we built in the last year and strengthens our path towards an IPO. As part of this growth round, Scott Shleifer, a partner at Tiger Global, will be joining our Board of Directors.
Together, we built the first on-demand anything marketplace in the country. When e-commerce giants threatened neighborhood businesses, we put tools in the hands of our local merchants. When our most loyal fans got hungrier, we pioneered the industries first ever subscription model. When we thought through ways for our Fleet to earn even more, we invented state-of-the-art route efficiency technologies. And when we asked ourselves why a burrito needed a 2-ton car to fulfill every delivery, we were the first to test new mobility solutions like emission-free robotics and driverless cars.
We are not just a team of firsts: together we reimagine the future of cities, the future of commerce, and the future of the modern consumer.
By all accounts, in the last year we’ve revved the engines of extraordinary growth —
- In a single day, we unlocked 131 new suburban & urban cities, expanding our coverage to 1 in 2 U.S. households
- Gross profits have averaged over 250% in the past four years, and gross margins have improved dramatically to nearly 50% in the last year
- ‘Unlimited’ adoption doubled within the last years, with 1 in 2 order now being placed by subscribers across numerous markets
- We complete millions of deliveries a month, generating over a billion in gross merchandise volume annually, and driving profitability in 90% of our markets
- Fleet acquisition hit all-time highs in the first 2 quarters of this year
- Top brands like Walmart, Chipotle, Sugarfish, Shake Shack, and 7-Eleven continue to be added to our robust roster of partner merchants month over month; nearly 250,000 businesses nationally sell through the platform; and an unprecedented number of partners have signed up for our API
- We are the undisputed market leader in the South West — LA, Las Vegas, Phoenix, San Diego, the O.C. amongst others are Postmates territory
We’ve been bullish about changing the face of omnichannel commerce in the United States and Mexico. And we’ve done so with judicious unit economics, sustainable growth strategies and by hiring a world-class team of experts.
Now, imagine what a new infusion of capital will enable us to unlock.
We’ll double down on route efficiency and expand our merchant selection advantage. We’ll launch hundreds of additional markets this Fall, broadening our coverage to 75% of U.S. households. We’ll accelerate new point-of-sale integrations for brick & mortar merchants, and continue scaling API-partners (making our delivery network as reliable as gravity, that even brands with their own delivery service rely on us). We’ll invest in cutting-edge research & development to identify how autonomy and robotics can move goods in cities more efficiently. We’ll expand brand awareness through the creative voice that has defined us in pop culture. We’ll use the superpower of our product as a force for good in defining the future of work and sustainable communities. We’ll balance targeted growth strategies, smart unit economics, and sensible customer pricing to expand from urban cores to suburban and rural parts of the country. And we’ll march towards an IPO.
Our ability to dream up the improbable is just getting started. We’re looking for ingenuity, unrelenting vision for how we do better, and that eccentricity which made us a verb to bridge us to tomorrow. Join us as we embark up this next chapter.