Postmates looks to solve local retail’s last mile
Postmates, the Uber-owned on-demand delivery platform, has introduced a new service supporting the last-mile needs of local retailers.
Under the program, Shop, local retailers create a virtual storefront on Postmates’ app, where they’ll be able to showcase their inventory with organized, configurable catalogs that feature high resolution images. Postmates will provide the retailer with a tablet to manage available inventory. Customers get access to a variety of options for getting their orders, including home delivery and in-store or curbside pickup.
Delivery and service fees range from $4.99 for standard delivery to $12.99 for priority. Unlimited subscribers receive free delivery.
Mike Buckley, who recently joined Postmates as SVP of business to guide the effort, told Glossy that Shop is designed to help local retailers meet heightened expectations for speedy online delivery created by Amazon Prime as well as to alleviate expected pressures from major carriers around shipping constraints this holiday season.
“Our intuition is that there’s going to be a lot of interest in beauty, personal care, home goods, apparel and more frequently [shopped categories], like flowers and hardware,” he said. “We’re trying to create a fun, curated shopping experience.”
Mr. Buckley, formerly VP, digital commerce operations & new business models at Nike, also expects the service to support flash sales, exclusive “drops” and other limited-time campaigns. “We think we can drive engagement to these merchants and create calls to action,” he told TechCrunch.
The move enables Postmates, acquired by Uber in July for $2.65 billion, to expand further beyond its core food-delivery offering and positions the platform as an online marketplace for mobile shoppers.
Shop’s introduction starts in Los Angeles with nearly 50 retailers, including Anastasia Beverly Hills, OWL Venice and Big Red Sun. A nationwide rollout is planned for 2021.
“This year, COVID really changed the landscape of how we purchase essentials, spend time recreationally and even how we treat ourselves,” said Heather DeLeon, director of sales, Anastasia Beverly Hills, in a statement. “Shop is such an interesting opportunity because it lets people get their hands on our products in a completely new and exciting way.”
- Postmates Brings The Best Of Local Retail To Your Doorstep With Launch Of New Shopping Experience Ahead Of Holiday Season – Postmates
- Shop on Postmates – Postmates
- Postmates is launching a new retail delivery feature as brick and mortar stores face 14% drop in sales – TechCrunch
- Anastasia Beverly Hills, Le Labo and Hourglass join Postmates on-demand delivery – Glossy
DISCUSSION QUESTIONS: Do you see a promising opportunity for local stores to work with Postmates’ Shop program to support delivery options? What do you think of Postmates’ potential as an online marketplace?