Postmates Unlimited lowers minimum order size for free delivery

Close-up of sign for the popular app-based food and supplies deliver service Postmates, in the Gourmet Ghetto (North Shattuck) neighborhood of Berkeley, California, October 6, 2017. (Photo by Smith Collection/Gado/Getty Images)

On the heels of a $300 million funding round valued at $1.2 billion, Postmates is making its Unlimited monthly subscription product a bit more economical. Postmates Unlimited, which costs $9.99 per month (or $7.99 per month paid annually), is lowering its minimum order size from $20 to $15. That means in order to get free delivery, you have to spend at least $15.

The on-demand delivery startup first launched its Amazon Prime-style subscription service in March 2016. At the time, the minimum order fee was $30. Just a few months later, Postmates lowered the minimum cart size to $25.

Postmates says one of every three orders come via its Unlimited members. Postmates has also doubled the number of people subscribed to Unlimited, touting “hundreds of thousands” of Unlimited customers and 300 percent growth year over year.

Postmates competitor DoorDash similarly offers a subscription service for free delivery. In August, DoorDash unveiled DashPass to offer free deliveries for orders of at least $15. Starting today, DoorDash is offering free one-week trials of its service.

Overall, Postmates says it completes millions of deliveries a month and is profitable in 90 percent of its markets. Postmates is currently available in more than 400 U.S. cities, as well as in Mexico City.

Source: TechCrunch

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