Postmates to experiment with on-demand delivery for a dollar
By Dan Boaz
Same day delivery services for retailers and restaurants are seemingly growing ever more competitive in light of news that on-demand delivery specialist Postmates are considering one hour deliveries (in specific markets) for just $1. Whether it's a publicity stunt or signs that earning a customer's purchase is priority one are open to debate but it's clear that the race to the bottom for on-demand delivery for restaurants and retailers is well underway.
The winner in the short term will be consumers who stand to see courier delivery service, typically by bike in the markets such as New York for less than the price of a candy bar. Naturally there are many restrictions on this pricing model which has the caveat of only being offered to specific zip codes at certain peak times but nevertheless it's an interesting development. Postmates seem to be very committed to cornering the rush same day delivery market as evidenced by recent funding of $80 million raised by Tiger Global Management.
It seems that it will be all about volume if this pricing point is something that Postmates can hold and in tandem with that residents of cities with the highest density are the ones that stand to be benefit from a local courier service at such an inexpensive rate.
The couriers themselves would aim to deliver multiple items to different addresses on a single ride and make money via tips that they might collect, meanwhile Postmates take 20% of the delivery fee with the real revenue being a 9% service fee on the price of each order. That one dollar delivery suddently just got quite a bit more expensive. We'll sit back and see what the response is although the next logical step is free on-demand delivery so long as customers are willing to pay a premium on the products or food purchased.
At SameDayDelivery.com we specialize in efficient same day trucking or same day air services for commercial and industrial freight usually within the business-to-business sector but like to monitor the latest developments in on demand delivery news.
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