What is Postmates
Postmates is a delivery application that’s similar to Seamless that allows users to order food from your smartphone or browser and have it delivered to the location of your choosing. The app also has a Covid-safety option where the user can request that the Postmates courier leave the order “at the door” which minimizes contact between individuals.
What Sets Postmates Apart
Other food delivery apps allow food deliveries only from restaurants. Postmates, however, allows delivery of items not just from restaurants, but from your local bodega and pharmacy such as Rite Aid. Talk about the perfect solution to the new socially distanced society! Unlike Seamless, Postmates also shows live updates, from the moment you order, to the time a courier has been assigned, to final delivery of your order to your door.
Are There Promo Codes for New Users
Fortunately, yes! New users can score $100 in delivery fee credits using the coupon code: COLLEGE100
Since each order comes with a delivery fee (typically ranging from $1.99 to $9.99), this $100 promo code will offer a new user 10 – 50 free deliveries on their orders. The only catch is that the $100 in discounts must be used within 7 days after code application.
At the time of this publication, COLLEGE100 is the best available code for new users. This code was geared towards college students who now have to learn from home for the foreseeable future. However, our insiders got hold of this promo code and we decided to share the coupon with you. We also confirmed with folks at Postmates that you do not need to be a college student to use this code. If you want to peruse through a full list of Postmates coupon codes, work your way over to CNET Postmates Promo Codes where you can find a current list of working coupons for the Postmates app.
Are There Promo Codes for Existing Users
Unfortunately, not at the moment… Postmates typically runs promos for existing users directly within the app. For example, the most recent promo was NYC specific where Postmates partnered up with Olay and Pressed Juicery for free pressed juice and face cream bundle that was worth $45. The special promo popped up directly in my app so no separate code was needed. Occasionally, there are code-based promos for existing users that get posted on CNET Postmates Promo Codes so that might be a good page to periodically check.
Are There Any Other Fees Involved
Unfortunately, yes. Similar to other delivery apps such as UberEats, Postmates also charges a service fee. However, UberEats usually charges a flat 15% service fee whereas Postmates’ service fee ranges between 5% – 15% which is typically distance based (distance between the pickup and drop-off locations). As an example, placing a $100 food order at a restaurant 3 blocks away from my home would cost me $15 in service fees with Eats but only $5 with Postmates (assuming the restaurant participates in both delivery platforms). You can see why Postmates is superior right?! It is no surprise that Uber decided to buy Postmates at a huge valuation!
How Else Can I Avoid the Delivery & Service Fees
The most logical option is doing the pickup option instead of delivery. You place the order as normal in the app but this time, click PICKUP on the top menu bar instead of DELIVERY, and voila, no fees!
Another option to save is by using a paid subscription based membership called Postmates Unlimited. At the time of this publication, the going rate is $9.99 / month. The membership offers UNLIMITED orders with waived delivery fees! As an unadvertised benefit, it also offers a minor discount on the service fee for each order, which based on my usage, I estimate to be an extra ~5% savings. Currently, Postmates is offering select users a free 1 month trial.
How Much Commission Does Postmates Charge Restaurants
The answer is that the rate varies restaurant to restaurant, based on location, volume, delivery vs. pickup and ultimately, how good the restaurant owner is at negotiating! Speaking with several restaurant owners in NYC, it appears that the general rate Postmates charges restaurants is ~15% for pickup orders and ~30-33% for deliveries. What?! That’s right, I was just as shocked as you when I first heard those numbers.
On a $100 food order for delivery at a distance > 1 mile, the user pays $15 in service fees (let’s assume he has the Postmates Unlimited membership – so $0 in delivery fees) and the restaurant pays $30 to Postmates. While this might seem like highway robbery, there are actually a lot of costs involved in the delivery space (such as payment to couriers and labor for the tech aspect of the app). In fact, majority of these delivery apps are still not yet profitable.
Why Should I Use Postmates if I Already Use Other Apps
I had the same mindset a year ago before I downloaded the app. I already had Seamless and Eats and smaller players in the game such as BeyondMenu, so why do I need another app to clog up my iPhone? Well, I realized that these delivery apps had one major similarity to the ridesharing apps. Each time I want to take a ride somewhere, I compare prices between Uber, Lyft and Via and I usually go with the cheapest option. Similar concept can be applied to the food delivery space – compare prices across these apps and go with the one with the cheapest total, which by the way, may not always be Postmates.
Once I became a user, I found Postmates to be much more reliable vs. its competitors. Also, the ability to deliver goods (like common household items or alcohol) truly sets it apart from the competition. Call me lazy, but I will gladly pay a premium to have Charmin toilet paper delivered when my local bodega only has sandpaper (Scotts) available!
Ever since I signed up, I have been using Postmates on a daily basis to a point where it has become essential in my life. I run a pretty busy schedule, so saving time on daily repetitions has afforded me increased work/life balance.
If you do not have the app yet, head over to CNET Postmates Promo Codes where you can find a current list of working coupons. Alternatively, you can use code COLLEGE100 where new users can score $100 in delivery fee credits.