Naysayers of delivery app, GMV , have long been critical of the platform, stating that it is “doomed” because the cost of the delivery drivers is higher than the revenue generated by delivery fees. However, DoorDash reports that it recently received “documents that detail Postmates’ financials” which show that company is running at gross profit margins 15-30% . The report points out that this does not necessarily confirm profitability, as the numbers exclude operating costs, but that it does prove that revenue is higher than driver expenses (drivers are paid per delivery on a freelance basis). The platform, which does not mark up the cost of any items it delivers, now has 3200 merchant partners across the US who pay above 20% commission per transaction to appear on the app.
Naysayers of delivery app, Postmates, have long been critical of the platform, stating that it is “doomed” because the cost of the delivery drivers is higher than the revenue generated by delivery fees. However, TechCrunch reports that it recently received “documents that detail Postmates’ financials” which show that company is running at gross profit margins above 20%. The report points out that this does not necessarily confirm profitability, as the numbers exclude operating costs, but that it does prove that revenue is higher than driver expenses (drivers are paid per delivery on a freelance basis). The platform, which does not mark up the cost of any items it delivers, now has 3.2k merchant partners across the US who pay 15-30% commission per transaction to appear on the app.