POSTMATESBAILEY BERRO (ABBERRO)

POSTMATES

WHAT DOES POSTMATES DO?

▸ On demand food and beverage

▸ 110 Cities

▸ 6,000 Merchants

POSTMATES

VALUE PROPOSITION

▸ For Drivers: Jobs

▸ For Customers: Convenience

▸ For Merchants: Customers

POSTMATES

FINANCIALS

▸ October 2016: Raised $140MM @ $600MM

▸ No significant valuation increase

▸ CEO claims profit viable late 2017

POSTMATES

FINANCIALS

POSTMATES

BUSINESS MODEL

▸ Delivery Fee

▸ Convenience Fee

▸ Postmates Plus

▸ Postmates Plus Unlimited

POSTMATES

POSTMATES ANYWHERE

▸ $5+ delivery fee based on distance

▸ Subject to ‘Blitz Pricing’

▸ 9.99% Convenience Fee

POSTMATES

POSTMATES PLUS

▸ $2.99/$3.99 Delivery fee

▸ Subject to ‘Blitz Pricing’

▸ 9.99% Convenience Fee

▸ Merchant pays to be a ‘plus’ merchant

POSTMATES

POSTMATES PLUS UNLIMITED

▸ $9.99/month subscription

▸ Not subject to ‘Blitz Pricing’

▸ No delivery fee on orders over $25

▸ No 9.99% Convenience Fee

POSTMATES

HISTORY

POSTMATES

SECRET SAUCE

Availability

‣24/7, 365 days

‣<1 hour delivery

‣Order anything in the city

POSTMATES

COMPETITION

▸ Mover + shaker in food delivery

▸ Major competition:

▸ Uber Eats

▸ GrubHub

POSTMATES

HOW POSTMATES STACKS UP

Postmates GrubHub Uber Eats

Liquor Delivery Yes From

Restaurants No

Number of Cities 110 1,100 50

Subscription Model Yes No No

POSTMATES

POSTMATES

PREDICTION

▸ Very crowded space

▸ Difficulty competing with Uber long term

▸ Continue to pour cash into growth

▸ Ultimately will have difficulty becoming profitable

POSTMATES

REFERENCES

▸ https://qz.com/850579/leaked-postmates-presentation-shows-the-delivery-startup-doesnt-expect-a-profit-until-2018/

▸ http://nextjuggernaut.com/blog/postmates-business-model-revenue-how-postmates-works/

▸ http://venturebeat.com/2015/09/17/with-4m-deliveries-under-its-belt-postmates-expands-to-10-new-cities/