Postmates is launching a new feature called Postmates Party that lets customers within the same neighborhood pool their orders. In return, these customers get the food delivered for free, eliminating a major pinch point for potential Postmates users.
The feature illustrates how Postmates, one of the earlier entrants to the billion-dollar food delivery wars, is trying to remain competitive by appealing to price-sensitive customers.
Customers using the app can tap on the Postmates Party tab, which will show trending merchants from which people in their neighborhood are ordering at that exact moment. By joining the “party,” customers can share the delivery from popular restaurants and get free delivery.
For now, the company’s party feature will only be offered in a handful of the nearly 3,000 U.S. cities in which it currently operates. The feature is now available in Chicago, Las Vegas, Long Beach, Calif., Los Angeles, Miami, New York City, Phoenix, San Francisco, San Diego, Seattle, Orange County, Calif. and Philadelphia.
And there is an important caveat. The party feature has a five-minute time limit in which the customer must place their order to get the deal.
“We are driven by the vision of creating a logistics infrastructure that allows goods to move throughout a city at nearly zero cost to the consumer. Postmates Party is the latest innovation in on-demand delivery that will help us deliver on this vision,” Postmates CEO and co-founder Bastian Lehmann said in a statement. “Postmates Party is a fun way to give customers the option to save money by ordering from popular restaurants that people all around them are ordering from in real time.”
Earlier this year, Postmates raised an additional $100 million in equity funding at a $1.85 billion valuation. The round comes four months after the eight-year-old startup drove home a $300 million investment that knocked it into “unicorn” territory.
