How to Make an App Like Postmates: Business Model, Solutions & Costs

Are you thinking about starting a last-mile delivery business? Today, we talk about one of the most successful food delivery apps: Postmates. Let’s find out why it’s so popular, what its main features are, and what last-mile business model it uses.

Food delivery apps are on the rise, especially today when we’re encouraged to stay home. The market is full of great last-mile delivery solutions, but Postmates stands out from the crowd. In this article, we talk about how to make an app like Postmates.

What is Postmates and how does it work?

At its core, Postmates is a courier service. While it started as a food delivery app, it has evolved into a major last-mile delivery service across the United States. Postmates and its services are available 24/7, allowing you to get anything you need, anytime, anywhere. How great is that?

Anyone can work as a Postmates courier. To become a courier, all you need to do is fill out a simple form. Couriers can deliver things by car, bike, or even foot. The Postmates approach is useful for everybody. First, Postmates allows couriers to work flexible schedules and gives customers what they want — fast doorstep delivery.

Postmates’ awesome statistics

Now that you know what Postmates is, let’s see why we decided to talk about last-mile delivery using Postmates as our example. Here are some statistics that demonstrate this app’s success:

• 7 years on the market
• 2 years to reach its first million deliveries
• 9.1% US food delivery market share
• $280 million in funding
• 250,000 business partners
• 2,940 cities of operation
• 2 million deliveries per month
• 60,000 vehicles in the delivery fleet
• 5,341 employees

Why did Postmates succeed?

Today, we’ve all heard about Postmates, but there was a time when it needed to make itself known. Let’s find out what decisions brought Postmates the popularity it now has. Here are the four main factors that contributed to Postmates’ success.

Grabbing the on-demand delivery trend early on

When launching his startup, Postmates CEO and co-founder Bastian Lehmann said “We’re betting on the huge trend that local inventory will become unlocked and available to purchase, even in smaller retail stores, because you won’t have to go to the store anymore.”

Getting the marketing right

When it first started, Postmates was ahead of its time in creating an on-demand delivery app. It attracted early adopters who spread the word and established the trend. This also helped Postmates save 80% on marketing costs.

Making money from day one

How to Build a Food Ordering Mobile App

Let’s be honest: money is a big concern when it comes to startups. The fact that Postmates got ROI fast made all the difference. This got the app the attention and trust of early investors.

Early success

Early success created a positive feedback loop for Postmates, allowing the company to gain some major investments and partners. Postmates got official contracts with 7-Eleven, Apple, McDonald’s, Starbucks, Walgreens, Chipotle, and many other well-known companies.

Aiming big

Postmates was determined to become a part of the city’s infrastructure. It operated in high demand and competed with giants like Uber and Amazon.

An app like Postmates: mistakes to avoid

Poor user experience

Great user experience has already become a standard, and users don’t tolerate apps with a confusing interfaces. Ensure your app has an intuitive user interface, easy navigation, and fast load times. Users won’t stick around if your app is difficult to use or slows them down.

Limited availability

Postmates is successful because it’s available in many cities and offers many restaurant options. Ensure your app is available in as many locations as possible and partners with as many restaurants and retailers as possible.

This may be tricky to achieve at first, so even if you launch your app in just one city, make sure to offer nearly all local restaurants.

Inconsistent service

Nothing irritates customers more than unfulfilled promises. If you’re promising a speedy delivery, ensure you can deliver on that promise consistently. Customers will quickly lose trust in your app if deliveries are late or unreliable. Compensation for being late will help one or two times, but then your customers will likely shift to another service.

Poor customer support

Make sure your app has a reliable and responsive customer support team to handle any issues or complaints that customers may have. Poor customer support can quickly lead to negative reviews and decreased user satisfaction.

Lack of marketing

Marketing is extremely important for food delivery apps, especially if there’s lots of competition. I recommend getting a solid marketing plan before you even start working on your delivery software. After launching your MVP, experiment with your messaging and marketing tools to focus on what works best for your business.

Poor security

Food delivery apps store lots of personal information: from emails and phone numbers to physical addresses and credit card information. Make sure your app is secure, and prevent any data breaches by testing your app for security regularly. Update your food delivery app frequently and fix any security issues immediately.

Must-have features of a Postmates-like app

If you'd like to learn more about how to build an app like Postmates, be sure to read our full article at Mobindustry.net!