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. But until one goes public, only the occasional glimpse at leaked financials gives us an accurate sense at how the businesses are doing. 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). In other words, while there may be some issues with how much money these companies make from their drivers, they do seem to be doing quite well for themselves.
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). In other words, while there may be some issues with how much money these companies make from their drivers, they do seem to be doing quite well for themselves.