Today I Learned... About Postmates' Dilemma
Postmates, the huge food delivery company, has a huge problem on their hands. With 10% of the food delivery market, there is a lot riding on their decision. Postmates has filed to go public, but may actually just sell the company instead. The food delivery business is such a hard business to profit off of with the so many companies with market share because then these companies have to undercut each other's already low prices.
Postmates has many large companies interested like Walmart and Uber who would like to add a food delivery service to their arsenal. Uber already has Uber Eats, but adding Postmates would be a good expansion. The thing with these types of food delivery companies is that they don't really have loyal customers. People will just use whichever app/company that gives them the lowest price. This is the same thing that is going on with Lyft and Uber. If Postmates and the other companies don't do anything about it soon, they will all fall into billions of debt just like Uber and Lyft are.
Schleifer, Theodore, and Jason Del Rey. “Postmates, the Food-Delivery Startup, Has Explored Being Sold to Uber or DoorDash.” Vox, Vox, 12 July 2019, www.vox.com/recode/2019/7/11/20688108/postmates-acquisition-ipo-doordash-walmart-uber.