Postmates, the on-demand delivery company, announced on Tuesday (Sept. 18) that it has raised $300 million in venture funding.
In a press release, Postmates said the funding round was led by Tiger Global Management, and comes on the back of a record year of growth, market expansion and adoption of a subscription service. As part of the round, Postmates said Tiger Global's Scott Shleifer will join the company's board of directors.
"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 CEO and Co-Founder Bastian Lehmann said in a press release. "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 neighborhoods."
In addition to announcing the new round of funding, the on-demand delivery company said its gross profit growth has averaged more than 250 percent during the past four years, while gross margins have improved dramatically by close to 50 percent. Postmates said it completes millions of deliveries each month, generates more than a billion dollars in gross merchandise volume annually and is profitable in 90 percent of the markets in which it operates.
What's more, Postmates said its Unlimited subscription model has seen record adoption so far in 2018, with the number of subscribers doubling since last year. The model has grown by 300 percent year over year, with one in two orders on the platform placed via Unlimited, across multiple markets. The company also said it expanded its reach in the U.S. this year, adding Walmart, Chipotle, 7-11, Shake Shack, Blaze Pizza, and the Los Angeles and New York sushi hotspot, SUGARFISH, to its roster of national restaurant and retail partners.
"With this funding, Postmates will expand its selection advantage; broaden coverage to over 70 percent of U.S. households by the end of the year; unleash new point-of-sale integration technologies; deploy state-of-the-art API tools (offering white-glove delivery services to non-brick-and-mortar retail partners at scale); scale social impact investments and new workforce development policies; and invest in cutting-edge R&D to devise new, last-mile mobility solutions," the company said in the press release.