Postmates is betting on more people wanting food delivered to their doorsteps.
The delivery company announced on Tuesday that it has added 1,000 more cities to its service, bringing the total number of cities in its universe to 3,500 across 50 states. With the expansion, Postmates says it’s available to more than 70% of U.S. households up from 26% in mid 2018.
…Postmates said its service is particularly popular among millennials, who represent about 75% of its customers.
The first new service was a membership program called Postmates Unlimited, which debuted in 2016. For $9.99 monthly, customers get free deliveries for orders that cost more than $15. Lehmann said Postmates Unlimited accounts for more than a third of all orders and triples the average frequency of orders per user.
…Data research firm Second Measure says that Postmates accounted for just 10% of total consumer spending in the food delivery space in March. Meanwhile, Grubhub had 33%, DoorDash had 30%, and Uber Eats has 22%.
Second Measure says that even though Postmates’ sales have increased 73% in the past year, its market share is relatively unchanged.
Brandon Liverence, data analyst at Second Measure, said all food delivery companies are benefiting from increased demand. Postmates just isn’t growing as quickly as some of it’s larger competitors, he said.