Postmates, Now Valued at $1 Billion, Wants IPO Next Year

September 18, 2018

By Christian Smith

On-demand delivery company Postmates is ready to go public by 2019, according to the company's SVP of Finance & Strategy Kristin Schaefer.

In fact, the company is even "ready today," she said Tuesday in an interview on Cheddar.

"If you look at the financials of the company today, it could be a public company."

Schaefer's comments came after the company announced it had raised $300 million in a new round of funding. The new capital puts Postmates's value at about $1.2 billion, according to a report by Fortune, making it among the latest start-ups to join the so-called unicorn club.

With its new funding, Schaefer said Postmates plans to increase its reach from half of U.S. households to 75 percent.

One key to Postmates's growth is its subscription service "Postmates Unlimited," which eliminates delivery fees on orders over $20 for a fee of $10 a month, a rate that drops to $8 if customers pay for the full year at once.

The Unlimited service currently makes up one in every three orders for the company, but Schaefer expects that to climb, especially as it invests its new capital in the program.

"We haven't done a ton of broad-based marketing around it, but we're seeing incredibly fast adoption from our existing customer base," she said.

"You will see us this year, adding additional benefits and continuing to market around it so more consumers know it's available."

For full interview click here.