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#1 Posted : Monday, June 29, 2020 2:29:34 PM(UTC)

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Postmates is one of the most popular apps on the planet. Its business model has inspired several entrepreneurs around the world. The Postmates can be regarded as both restaurant aggregators and delivery agents. They follow a traditional model of listing partnered restaurants in a standalone application. Along with that, Postmates handle order delivery and have hired executive delivery executives in its own logistics network. One of the reasons for the success of Postmates is its user-friendly services. Some of the notable features in the app are:

Tailored restaurant recommendations
Advanced search filters
Order tracking 
Customizable delivery details
Here are the three main monetization strategies used by Postmatets in its business model:

Delivery fee:

Rather than having a flat rate for all food deliveries, they have introduced a price calculator that determines the delivery fee based on the distance between the restaurant and delivery location. Thus the delivery fee carries with every order and proven to be a great strategy to increase the overall revenue.

Sharing revenue from restaurants:

They sign deals with restaurants to get a share of their revenue for every order placed with their application in their restaurant.


Advertising is another major stream of revenue for this industry. Restaurants will pay for enhanced visibility on every search result. Wherever a user searches in the application, the restaurant that pays to the provider will be displayed as the first result. Since the majority of people clock on the first result, restaurants use this strategy as a tool to get more revenue. This monetization strategy creates a win-win situation for both parties.

Get in touch with an on-demand food delivery app company to learn more about the development process and the cost involved in it. The cost cannot be estimated prior as the cost will depend on the number of elements, and features that you choose to include in the application.
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