Leaked Postmates financials suggest making merchants pay works

postmates

Postmates’ financials got leaked to reporters at TechCrunch:

The files, dated last fall, show a glimpse at Postmates’ rapid growth in the delivery business, despite a competitive landscape which includes DoorDash, Grubhub and now Uber Eats. We’ve also obtained more recent numbers that suggest that the growth has continued.

Instead of marking up the delivered items Postmates has partnering merchants paying commission fees. (and thus having a lot of the costs for Postmates deliveries being absorbed by the whole operations of the merchants)

The documents highlight Postmates’ gross profit margins, which we understand are now above 20%. This is not the same thing as actual profitability because it excludes operating costs, but it does demonstrate that Postmates brings in more revenue than what it pays the couriers. We are told that the costs associated with each transaction have been accounted for in COGS. (Postmates is also forecasting net profitability in 2017 – we’ve confirmed that they are still on track). (…)

The files reveal that in the first quarter of last year, Postmates processed $28 million in transactions (GMV), resulting in $6.5 million in net revenue and $1.1 million in gross profit, up 67% from the prior quarter. Postmates projected $55 million in net revenue and $11.3 million in gross profit for last year, a substantial increase from the $8.6 million in net revenue and $1.03 million in gross profit from 2014.

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