Food Delivery Wars

The Lempert Report
October 19, 2015

Another on-demand food delivery service is popping up, but who is it?

Another on-demand food delivery service is popping up, find out who, next! 

Postmates is the latest to step up their food delivery game. The on-demand delivery service is looking to take on other on-demand food delivery services  - such as UberEats with its own express offering.  Postmates Pop was unveiled recently which will deliver pre-prepared (but freshly made) items to you within 15 minutes for a $1.99 delivery fee.

Starting weekdays at 11 a.m. and staying available until inventory is gone, Postmates users will see a Pop icon appear at the bottom of their app. The menu will vary and will include a handful of options from the service’s 3,000-plus in-network merchants, for these options Postmates promises a delivery time of no more than 15 minutes, and to start, Postmates Pop will only focus on $10 lunch specials.

This latest effort from Postmates seems the natural next step given the company is known for fast delivery, but more importantly, it was a necessary next step. Quick and efficient on-demand delivery services is becoming increasingly competitive. From Uber, to Square’s Fastbite, and now even Amazon testing restaurant delivery, almost everyone and everything is available on-demand.

Supermarkets would do well to take note of this as a reminder of what consumers are used to and what they are expecting. Retailers should be considering their own delivery services whether that's with groceries or even prepared foods and offering their customers options with efficient, convenient delivery. Supermarkets need to take into consideration the increasing availability of the 'on-demand' offerings and make sure they are not left behind.