Postmates, a leading on-demand grocery delivery service, has announced its procurement of $300 million led by Tiger Global Management.
Over the last year, the online service has seen steady growth and has adopted what it calls an ‘industry first’: a subscription service whereby consumers pay a rolling fee in return for a premium delivery service for groceries and fast food. Consumers also have access to over 25,000 partner brands.
The delivery subscription service takes convenience one step further for consumers, and the $300 million raised will further connect technology with the communities in which consumers are based in.
Postmates says that local brick-and-mortar retail sales were boosted by four times in 2017. The company claims this was due to the creation of an ‘alternate infrastructure’ for local and small businesses to compete against bigger online services.
Postmates CEO and Co-Founder Bastian Lehmann said: “The transformation of how commerce moves in cities demands that we build the most innovative tools for businesses to keep up and distribute their products to the modern consumer – efficiently and cost-effectively.
“Postmates is proud to be the first and largest on-demand network that is enabling the growth of retail across the country, and today’s investment accelerates our ability to pair technology with the vitality of our neighbourhoods.”
The transformation of grocery shopping is clear through the popularity of Postmates’ subscription service, which has seen a 300% growth year on year since its introduction.
© FoodBev Media Ltd 2019