Postmates announced the launch of a grocery delivery branch of its platform on Nov. 8. Postmates Fresh launched in Manhattan, Los Angeles and San Francisco. The new feature rolled out the same day as Postmates’ new interface. It aims to compete with Amazon Fresh and Instacart.

While Postmates has always offered grocery delivery, the new Fresh program offers curated groceries from local sources. They have partnered with fresh, local produce sources like Farmstead, Urban Radish and East Village Farm.

Upsides of Postmates Fresh

The delivery service is being advertised as faster than its more established counterparts. Fresh has a time window of thirty minutes for delivery (average). This is contrary to Instacart, which advertises deliveries in as short as one hour. Postmates branded the service as an “on-demand Farmer’s Market,” and playing up how customers can use it to get last minute groceries in a short amount of time. There is a growing trend toward buying local, organic, farm-to-table groceries, and Fresh intends to cater to it.

Postmates Fresh Pricing

In addition, the new feature is cheaper than both Instacart and Amazon Fresh. Postmates Fresh charges $3.99 per delivery or $9.99 per month for a subscription. On the other hand, Instacart charges between $5.99 and $7.99 in addition to a service fee. Amazon Fresh comes in conjunction with Amazon Prime, which costs the average buyer over $270 per year.

Postmates co-founder and CEO Bastian Lehmann said he anticipates audiences will choose Postmates Fresh simply based on price. Although for the time being, their grocery selection is more limited, Postmates may not have to worry about this, either. Amazon has been cutting back on their Fresh program, pulling out of multiple markets in the last year. However, Amazon appears to be far from done with the grocery business and may use their recent acquisition of Whole Foods to target the same health-conscious population Postmates Fresh wants to reach.

Upsides for Drivers

Postmates has already been targeting a high-earning clientele, and the Fresh program will probably target a similar group.

In general, locally sourced produce is going to carry a higher price tag than your average Walmart run, which could lead to higher priced orders. Hopefully, higher-priced orders from the type of clientele who will pay for high end groceries will lead to higher tips for drivers.