# Postmates Financial Model On-demand local courier marketplace connecting businesses and consumers with a network of independent courier companies for same-day/immediate delivery. - Canonical: https://finamodel.com/startups/postmates - Excel download: https://finamodel.com/startup-models/postmates.xlsx - Category: Marketplace - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $225M - Founded: 2020 - Geography: San Francisco (trial); New York scouting underway [DECK slide 8] - Customer: B2C ## About the company Postmates began as an on-demand courier marketplace connecting businesses and consumers with local delivery companies. The platform aggregates fragmented courier capacity, provides dispatch and tracking, and aims to make same-day delivery more accessible than traditional courier options. At the deck stage, 20 courier companies had committed, 80 more were ready for trials, and the company was operating in San Francisco while assessing New York. Revenue comes from fees on shipments, insurance and premium surcharges, with possible software services for courier partners. The model is a city-launch marketplace forecast. Courier supply, business accounts, shipments per customer, average delivery price, and take rate build GMV and revenue. City rollout, courier activation, delivery quality, insurance attach, and customer acquisition cost determine contribution margin and the pace of expansion. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Aggregates fragmented local courier companies onto a single platform with real-time dispatch and tracking - Consumer/business value: same-day/immediate delivery at ~$60 vs. $492 for independent courier or next-day $220 for UPS, with tracking and only 5 min of effort - Comparison example (43x30x30" item, SF to Palo Alto): Postmates $60 + tracking + Now + 5 min effort; UPS $220 next-day; Indep. courier $492 same-day; Own car $10 but 4 hrs effort - Tech platform: real-time logistics (Python/Tornado/MySQL/MongoDB/Java/Hadoop), mobile apps (iPhone/Android/HTML5), Partner API - Revenue streams: (1) transaction fee per shipment, (2) item shipping insurance, (3) premium delivery surcharges (weekends/holidays); platform-side: dispatch/CRM services, fuel purchasing facilitation, courier liability insurance, value-add routing services ## Market - US Courier Market TAM: $72B - UPS: $30B - FedEx: $18B - USPS: $11B - Dynamex & Express 1: $400M - Long tail (Postmates target): ~$10B shared among 12,000 companies - 47% of long-tail companies have revenues between $1M–$5M; mostly local & same-day ## Revenue model - **Transaction fee**: percentage or flat fee on each shipment booked through Postmates platform; exact take-rate not stated - **Insurance**: per-shipment item insurance (upsell) - **Premium delivery surcharges**: weekends, holidays - **Platform/SaaS services to couriers**: dispatch software, CRM, fuel purchasing facilitation, liability insurance, route optimization - Pricing example: $60 per shipment to end customer - unclear what portion Postmates retains vs. courier - Channels: direct (consumer/business web/mobile app), Partner API for B2B integrations ## Traction & metrics - 20 courier companies already committed - 80 additional couriers ready to expand trial - First businesses committed for shipping - Running trial in San Francisco - New York scouting started - No revenue figures, GMV, order volume, or retention rates disclosed ## Competition / moat - Competitive framing: incumbent couriers (UPS, FedEx, USPS, independents) are expensive, slow, or low-effort alternatives - Market moat: local network effects - once courier companies and businesses are locked in a market, competitors are blocked ("Market Lock" step) - Moat mechanism: on-boarding existing courier client books, proprietary dispatch platform, relationship managers per city - No named direct competitors (other on-demand delivery startups) addressed in deck ## Team & funding ask / use of funds - **Founding team**: - Bastian Lehmann - Founder & CEO, 3rd startup - Sam Street - Co-founder & iPhone Dev (Picli) - Sean Plaice - Co-founder & Lead Engineer (Yelp) - **Investors**: AngelPad (Thomas Korte / Google), Andy McLoughlin (Huddle), Jon Bradford (TDE) - **Advisors**: Keval Desai (Google, Digg), Gokul Rajaram (Google, Facebook) - **Raised to date**: $125K seed round - **Funding ask**: Not explicitly stated in deck --- ## Recommended financial model - **Archetype + why**: Marketplace / delivery platform GMV model with take-rate revenue. Postmates is a two-sided marketplace (businesses/consumers + courier companies) where revenue = GMV × take-rate + ancillary fees. The city-by-city rollout mechanic makes a market expansion cohort model natural. - **Forecast horizon & granularity**: 3 years (2011–2014), monthly for Year 1, quarterly for Years 2–3. City-level cohort tracking recommended given the staged market rollout (Discovery → Trial → Expansion → Lock). - **Key drivers & assumptions**: - Number of active cities: 1 at model start (SF); expand to ~3 cities by end of Year 1, ~10 by end of Year 2, based on slide 9 rollout cadence - Deliveries per city per day at Trial: 100 deliveries/day target - Deliveries per city per day at Expansion/Lock: 500+ deliveries/day - Average order value (AOV) / revenue per delivery: $60 stated as example shipment cost to customer; this is full transaction value; actual AOV may vary by delivery type - Take-rate (Postmates revenue / GMV): 15–25%, consistent with courier marketplace peers; exact rate not disclosed - Courier count per city at Trial: ~20 companies; 80 additional ready - Business merchant count at Trial: ~50 per city - Time to Market Lock per city: ~90–120 days from trial start, based on the 4-step process described - Platform/SaaS revenue from couriers: small % of total initially; may grow as courier base scales - Insurance attach rate: 20–30% of shipments - Premium delivery mix (weekends/holidays): 15–20% of volume - Courier payout as % of transaction: 70–80% (gross margin 20–30% pre-opex) - Headcount: 1 local Courier Relationship Manager per city (mentioned in slide 9); central tech team ~5 FTEs initially - CAC (merchant): low - outbound/telesales model suggested; estimate $50–$200/merchant - CAC (courier company): relationship-manager driven; minimal cash cost - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: City rollout per plan (3→10 cities), 100→500 deliveries/day per city ramp over 6 months, 18% take-rate - **Bull**: Faster city expansion, higher AOV from B2B/enterprise clients, platform SaaS fees materialize - **Bear**: Slow merchant/courier onboarding, low delivery volumes, take-rate compression from courier negotiation, high Courier Relationship Manager cost per city - **Required sheets / outputs**: 1. Assumptions sheet (all drivers tagged DECK/ASSUMED) 2. City Cohort model (city launch dates, ramp curve, deliveries/day, GMV per city) 3. Consolidated P&L (Revenue = GMV × take-rate + insurance + premium surcharges; COGS = courier payouts; Gross Profit; Opex = headcount, tech, marketing) 4. Headcount plan (CRMs + central team) 5. Cash flow / runway (given $125K seed; burn rate vs. cash) 6. KPI dashboard (cities live, daily deliveries, GMV, take-rate revenue, gross margin %) 7. Scenario toggle (Base / Bull / Bear) ## Frequently asked questions ### Is the Postmates financial model free? Yes. The Postmates model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.