The Best Part-Time Job: Bastian Lehmann on Postmates

Transcript

Yeah, it's me. Okay, people are still filing back in, but we've got an amazing speaker coming up next. So, please hurry back if you're not already in your seats. Uh, here in New York, we're pretty obsessed with the on demand economy because we're all either really lazy or we're working a lot harder than the folks in San Francisco and we don't have ... Read More

Summary

In this video, the CEO of Postmates, Bastian Lehmann, discusses the growth and future of the on-demand economy. He talks about how Postmates started as an errand-running service and transitioned into the food delivery industry. Lehmann also addresses the competition in the market, the potential for consolidation, and the impact of the on-demand economy on workers. He shares examples of interesting items that have been delivered through Postmates, such as whippets and a champagne bottle with a pregnancy test. Overall, he emphasizes the flexibility and income opportunities that the on-demand economy provides for workers.

Questions & Answers

Q: What has been happening at Postmates recently?

Postmates has been busy signing up partnerships with companies like Chipotle and Starbucks. They have experienced significant growth in the last six months, and are now the largest on-demand delivery company.

Q: How has the growth been in the food delivery business?

Postmates has completed over two million deliveries. It took them seven and a half weeks to go from 1.5 million to two million deliveries. The growth is driven not only by partnerships, but also by the increasing demand for on-demand food delivery.

Q: Did Postmates start as a food delivery service?

No, Postmates originally started as a service for merchants to deliver their stocked items. However, they discovered that customers were using the app to request purchases from stores, leading to a transition into the delivery model.

Q: What led to the focus on food delivery?

Postmates decided to focus on food, specifically prepared food, because of its universal demand, low price point, and unlimited inventory. They used the strategy of scaling with food delivery, similar to how Amazon used books at the beginning.

Q: What markets are Postmates looking to enter next?

Postmates is considering expanding into the grocery delivery market, as well as other categories like personal hygiene and home essentials. They want to create a better grocery product and continue to explore new opportunities.

Q: What are the margins and revenue like for Postmates?

Postmates aims to generate a profit with every delivery, and they have a healthy gross margin. They are on track to achieve profitability in 2016. The product's value and customers' willingness to pay have contributed to their success.

Q: Are there concerns about the competition and the amount of money being raised in the delivery startup space?

Consolidation may happen at some point, but being a first mover in the market has given Postmates an advantage. They have been able to lock in supply and grow quickly. The focus is on fulfilling their vision and continuing to provide value to customers.

Q: Would Postmates consider being acquired by a larger company?

While an acquisition or consolidation offer with a significant amount of money would be considered, the founders of Postmates are driven by their vision to help local businesses. They want to ensure that the company's purpose can still be fulfilled in any scenario.

Q: What are the implications of the on-demand economy for workers and the broader economy?

Postmates views their service as a solid part-time job, offering flexibility and higher income compared to other part-time jobs. The on-demand economy creates new market opportunities and appeals to individuals looking for flexible work arrangements.

Q: What is the weirdest thing that Postmates has delivered?

Some interesting items that have been delivered through Postmates include whippets (nitrous oxide cartridges) and a combination of a champagne bottle and a pregnancy test. However, most deliveries are purchases rather than random items.

Takeaways

The on-demand economy, as exemplified by Postmates, has experienced significant growth in the food delivery industry. Postmates has successfully focused on providing flexible part-time job opportunities and higher income for workers. The company's emphasis on prepared food delivery has allowed them to scale quickly and become the largest on-demand delivery fleet. The on-demand economy creates new market opportunities and appeals to those who prefer flexible work arrangements. Consolidation in the delivery startup space may occur in the future.