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Postmates IPO: A Brief Guide

April 27, 2023 11:03 am
Published by: David Richardson

According to a report by Statista, the online food delivery market is expected to reach $910 billion by the end of 2023, and Postmates is one of the big players in that sector.

If you’re interested in investing in Postmates and want to find out more about its financial profile, company performance, and whether there will be a Postmates IPO soon, this article will provide you with all the information you’re looking for!

About Postmates

Postmates is an American online delivery service specialising in delivering prepared meals to customers.

The company was established in 2011 by its current CEO, Bastian Lehmann, Sean Plaice and Sam Street.

Like many companies in the tech sector, Postmates’s first office was established in San Francisco, which remains the company’s headquarters.

In late 2017, Postmates announced that it’d launch its services in the Mexican capital to be the first city to serve outside the United States. However, in 2019, the company announced that it’d shut down its operations in Mexico to focus on the American market.

According to reports, the company today operates in over 6,000 cities inside and outside the United States.

The company acquired three smaller companies (Slosh, Bold, and Hey!, inc) between 2015 and 2017.

In 2020, Postmates was officially acquired by Uber in an all-stock deal at around $2.65 billion, although Uber announced that the two companies would maintain their operations mostly separate, except for a shared pool of drivers.

How Does Postmates Make Money?

According to Zippa, Postmates generates an annual revenue of around $1.0 billion, which is the company’s peak revenue since 2021.

Postmates make money through various methods. The primary source of income is charging a percentage-based fee for its services, including delivery, commissions, service, cancellation, etc.

Postmates also have a subscription-based premium service called “Unlimited”, which offers free delivery and other perks to its users.

The company also runs various advertising campaigns and promotions in collaboration with vendors on its platform.

Postmates Funding Rounds and Top Investors

Since its establishment, Postmates has raised a total of around $763 million over the course of 12 funding rounds. Here’s a breakdown of each funding round along with its top investors:

  • On October 15, 2012, Postmates launched a founding seed round that raised $750 thousand from 9 investors, led by AngelPad.
  • On April 15, 2012, Postmates launched another seed round to raise a total of $1.2 million from 8 investors, led by Founders Fund, AngelPad, and others.
  • On March 19, 2013, an early-stage venture under the name of “Series A - Postmates ” raised a total of $5 million, led by Founders Fund, and 7 others.
  • On February 18, 2014, another early-stage venture under the name of “Series B - Postmates ” raised a total of $16 million, led by Spark Capital, AngelPad, and 6 others.
  • On February 20, 2015, a late-stage venture under the name of “Series C - Postmates” raised a total of $35 million, led by Spark Capital, Harmony Partners, AngelPad, Founders fund, and 3 other entities.
  • On June 25, 2015, another late-stage venture under the name of “Series D - Postmates” raised a total of $80 million, led by Tiger Global Management along with 7 other investors.
  • On August 5, 2016, a funding round under the name of “Funding Round - Postmates” raised an undisclosed amount from a single investor “Decacorn Capital”.
  • In 2017, two funding rounds under the name of “Secondary Market - Postmates” raised an undisclosed amount, led by multiple undisclosed investors.
  • On September 18, 2018, a late-stage venture under the name of “Series E - Postmates” raised a total of $300 million from a single investor “Tiger Global Management”.
  • On January 10, 2019, another late-stage venture under the name of “Series F - Postmates” raised a total of $100 million, led by Tiger Global Management, Glynn Capital Management, BlackRock, and other investing partners.
  • On September 19, 2019, a final investment under the name of “Private Equity Round - Postmates” raised a total of $225 million from a single investor “GPI Capital”.

Postmates IPO Outlook

Postmates reach a valuation of $1.0 billion in 2018. However, during the initial company plans to go public in 2019, the company was valued at $1.85 billion.

In 2020, Postmates sales due to the pandemic nearly doubled, which allowed the company to leverage the revenue to boost its IPO valuation.

Since Uber's acquisition of Postmates, details surrounding the Postmates IPO became unclear, with no official statements about the company’s plan to go public.

However, since the company continues to make steady profits and the online food delivery market is expected to grow, Postmates could announce its IPO plans soon.

Wrap Up

This marks the end of today’s guide that walks you through the details of Postmates IPO. As you can notice, the acquisition of Postmates by Uber is one of the main reasons behind delaying the company’s plans to go public.

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The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.

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