Updated: 06/25/2021
Editor’s note: This article is part of an ongoing series Courier Hacker is publishing to inform potential drivers of all the brands in the gig economy. We will be featuring brands from different categories (food delivery, travel, rideshare, health services, home services, pet care, etc.)
The Postmates platform offers delivery of everything from food to office products. The idea for the company came to be when Bastian Lehmann was in the process of moving from Munich to London. Lehmann found himself frustrated at the lack of an easily-usable platform to move items back and forth around London. He carried the idea for a courier platform with him to a later position at AngelPad in San Francisco. There, he met Sean Plaice and Sam Street, with whom he would found Postmates in March of 2011.
In 2017, the company is an industry leader in on-demand delivery of various goods. They have over 65,000 members in their fleet to date. They also have partnerships with a number of popular retailers, ranging from Walgreens to Starbucks to Apple. The company site lists more than 200 locations across the U.S. that now offer Postmates services.
History and Funding
Postmates has entered its last stage of funding, and has made several acquisitions over its almost seven year lifespan. Their acquisitions include Bold, a platform that handles enterprise publishing and editing; Hey! Inc., a journaling platform; and Sosh, a social app that connect users to other local events and locations.
The brand has raised over $278,000,000 to date. Lead investors have included Tiger Global Management, Founders Fund, Spark Capital and Harmony Partners. Their seed round was only $60,000, while their latest series of funding is $140,000,000.
Early in 2017, Postmates announced intentions to move $1 billion across the platform in 2017. Lehmann also hopes to take the company public by 2019.
Postmates’ request to move into series E funding in October 2016. Investor enthusiasm had waned for gig economy startups at that time, as the market exploded with options for new companies. Postmates requested $190 million, and their post-money valuation came in around $800 million, rather than going up from series E to series D. Lehmann said he felt this was an undervaluing of the company.
How Much Can You Earn?
Postmates’ minimum pay per delivery is $4.10 (base pay + fee per minute waiting + fee per mile). This model can be problematic if couriers aren’t strategic about their deliveries. The trick to Postmates, however, is the tip.
Couriers who give great customer service, dress nicely, and thoroughly check orders before delivery are likely to see a better tip.
Postmates advertises earnings of up to $25 per hour. Unfortunately, many couriers don’t see earnings that high. If you work during peak hours and can afford to be picky about what orders you accept, earnings can easily be in the $20+ range. However, if you’re trying to make this a full-time gig, you may find yourself earning minimum wage—if that. Drivers have often reported a lack of available jobs in their area, and those who get jobs often find them either time-consuming or without a tip.
Postmates Job Requirements
Couriers can create an account on Postmates.com, where they will also need to fill out the “Fleet Agreement” (Postmates’ terms and conditions for couriers). They must also undergo a background check and upload a profile photo. After these steps are complete, they can set up direct deposit and then wait for their prepaid Postmates Card, which they will use to complete purchases that are not prepaid.
