San Francisco-based Postmates, an on-demand delivery app that competes with UberEats and DoorDash, has just secured $140 million in funding led by Founders Fund, valuing it at $600 million.
It wasn’t an easy process for Postmates CEO Bastian Lehmann, who told TechCrunch that the “fundraising environment…has cooled, specifically in the on-demand space.” Nevertheless, Postmates succeeded, likely thanks to its proven track record.
While many other on-demand companies have struggled to grow revenues beyond a delivery-fee-based model, Postmates has been able to bring in extra money by selling premium placements to some 6,000 merchants.
The company plans to use the new funding to improve engineering and expand to new markets.
This is correct and we’re not far off with our Unlimited subscription: https://t.co/tuvFUZ5Bh5
— Bastian Lehmann (@Basti) October 31, 2016
Postmates currently completes over 1.5 million deliveries a month and claims it’s on track to hit profitability at some point in 2017. Lehmann says an IPO is one option he’s considering for the future, but not in the next 12 months.