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The Postmates Economic Impact Report:: How On-Demand Technologies Are Fueling The Future of Retail & Commerce in Cities

Postmates engaged a research firm to study the economic impact of Postmates' on-demand delivery platform. The study found that Postmates generated $1.2 billion in revenue and $6.6 billion in overall economic activity in 2017. It also found that merchants using Postmates grew 3.7 times faster than those not using the platform, and that Postmates added over 5,700 jobs to the US economy that year, with 3,850 in the food services sector. The report concluded that Postmates significantly contributes to economic growth in the cities where it operates.

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186 views18 pages

The Postmates Economic Impact Report:: How On-Demand Technologies Are Fueling The Future of Retail & Commerce in Cities

Postmates engaged a research firm to study the economic impact of Postmates' on-demand delivery platform. The study found that Postmates generated $1.2 billion in revenue and $6.6 billion in overall economic activity in 2017. It also found that merchants using Postmates grew 3.7 times faster than those not using the platform, and that Postmates added over 5,700 jobs to the US economy that year, with 3,850 in the food services sector. The report concluded that Postmates significantly contributes to economic growth in the cities where it operates.

Uploaded by

sugandha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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THE POSTMATES

ECONOMIC IMPACT
REPORT:
How On-Demand Technologies
are Fueling the Future of Retail
& Commerce in Cities

2018
Commerce in cities is transforming. Some
e-commerce companies build a wholesale
warehouse outside of your city. We treat the
whole city as the warehouse, and give local
merchants the tools they need to distribute their
goods. On-demand technologies provide a way
for brick and mortar retail to modernize and
compete in the 21st century by plugging them into
smart algorithms and a vast courier network that
expands their reach, and connects customers to
on-demand convenience.
Anything, anywhere, anytime. We get it.

Postmates engaged Edelman Intelligence, a global research


and analytics consultancy, to develop an economic
impact model to measure the company’s impact on the
markets where Postmates operates. This included applying
econometrics modeling techniques to over 80 demographic,
industry and labor market characteristics over a seven-
year period and across 300 U.S. markets. Results measure
Postmates’ incremental impact to the retail sector, food
service and the local economies.
$1.2 BILLION IN
REVENUE
GENERATED THROUGH
POSTMATES PLATFORM
$6.6 BILLION
IN ECONOMIC
This revenue was calculated by Postmates as of 2017 - Q1 of 2018

3.7X FASTER ACTIVITY


GROWTH ACROSS ALL
FOR MERCHANTS USING
POSTMATES
SALES, COURIER
EARNINGS AND
$216.8 MILLION MERCHANT GROWTH
Economic activity reflects $584 million in sales generated in 2017

EARNED
OVERALL BY POSTMATES IN 2017
Postmates
enables partner
merchants to grow
3.7X faster,
as compared to
merchants that don’t
use Postmates, helping
local business compete
with the e-commerce
Goliaths of our day.
Representative of the growth of new partners on the platform, compared to their performance
prior to signing a partnership agreement with Postmates.
“
Postmates
delivery adds to
our growth with
new customers,
doubled revenue
each week and
new jobs. We’ve
added personnel
staffing in the
front of the house
so we can handle
the volume.
– DANNY TREJO

TREJO’S TACOS ”
La Brea, Hollywood, Pasadena,
Woodland Hills, Woodland Hills,
and USC Village
On average,
Postmates earn
$18.32 per hour
during an active job.
That’s 153% more than the
national minimum wage.

In 2017 alone, Postmates


fleet made a collective
$216.8 million.
We love our Postmates
to the moon and back.

We couldn’t do what we do without


our Postmates fleet
THEY’VE TRAVELED THE
DISTANCE OF GOING TO THE
MOON AND BACK MORE THAN
212 TIMES TO DATE.
Our Postmates are exemplary of the
modern, mobile and independent
workforce, and with an entire city for
their workspace, they “get it.” That’s
why we are also invested in national
policy and legislative discussions to
preserve our flexibility and explore
new ways to invest in the economic
certainty of our fleet.
Postmates made
more than 35
million deliveries
to customers,
generating more than $1.2
billion in revenue through
the Postmates platform and
saving customers more than
11 million hours in time.
These totals were calculated by Postmates as of April 1, 2018
The Ripple Effect

When we grow, so do the


markets we operate in.
Some call us a disruptor.
We just believe in working
with local businesses
to meet the needs of
the consumer, and
empowering mom & pop
retailers to compete in a
digital economy.
Overall, Postmates
business creates
$6.6 billion in
economic activity
across the U.S.
each year.
Postmates markets experience
a $267 million increase to GDP,
according to most recent data.

Calculated using sales and earnings as of Dec. 31, 2017


THE POSTMATES PLATFORM
CONNECTS INDIVIDUAL
CONSUMERS TO HUNDREDS
OF MERCHANTS IN THEIR
LOCAL MARKET.

As a result, the
overall economy
Merchants expand grows 1% faster in
For every $1 in sales on and bring on more a Postmates market
the Postmates platform, employees, generating (as compared to non-
merchants see a boost an additional $18.55 in Postmates markets).
in business. economic impact.
Market-by-Market Impact

Every city is unique.


We get it.
LOS NEW YORK
ANGELES CONCRETE
CITY OF STARS JUNGLE
Postmates enables partner Postmates enables partner
merchants to grow 10x faster merchants to grow 3x faster

Postmates generated $380 Postmates generated $127.7


million in sales million in sales

Postmates saved customers Postmates saved customers


more than 3.9 million hours more than 1 million hours
(or 164K days) (or 41K days)
Postmates cities
experience an
average 0.9% lift
in employment
growth, above
non-Postmates
markets.
EACH YEAR,
POSTMATES
ADDS 5,766
JOBS TO THE U.S.
ECONOMY. OF
THOSE, 3,850 ARE
IN FOOD SERVICES
EMPLOYMENT.
as measured by the Bureau of Labor
Statistics and Gross Domestic Product
as reported by the U.S. Census Bureau
“ Since joining Postmates,
Cheers Market has grown
over 300 percent.  By
utilizing the on-demand
services, we have been able
to gain new customers as
well as learn the new trend
hitting the industry. Due to
the on-demand business,
we’ve had the opportunity
to expand not only in
Northern California, but
also in Southern California.
Postmates has truly helped
small businesses like mine
by giving us the power of
a delivery fleet, as well as
marketing that attracts
customers that would have

”
never found us.
– RAHIM ALI
CORDOVA
MARKET CORDOVA MARKET & DELI
San Francisco, CA 94112
METHODOLOGY

USING A MATCHED-PAIR
ANCOVA TO MEASURE
“THE POSTMATES EFFECT”
OVERVIEW: HOW DOES THIS CAPTURE
DIFFERENT MARKET BEHAVIOR?
To measure the impact that Postmates
has on the local economy, a matched-pair We map Postmates sales
ANCOVA/analysis is employed. This process data (Zip-level data) to U.S.
pairs markets – with and without Postmates Metropolitan Statistical Areas,
– to calculate differences in retail wage, and pair markets with similar
employment and GDP growth. Because many qualities to control for natural
factors can contribute to differences in and unrelated variance in the
economic performance, data on other factors* dependent variable.
(or covariates) are included in the model,
enabling us to isolate “The Postmates effect.” WHAT KIND OF DATA IS USED?

Through this process, we have also created a Postmates data extracts are
database on Postmates sales, wages paid to paired with US. Bureau of Labor
couriers, distances, community characteristics, Statistics, U.S. Census Bureau,
GDP, overall employment and unemployment American Community Survey,
by industry, local demographics and other key IRS, and Bureau of Economic
metrics. We are also using data to calculate a Analysis sources.
“factbook” containing a myriad of descriptive
statistics on Postmates’ contributions to the local
economies and businesses in which it operates.

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