Postmates Adds Grocery Delivery, Undercutting Amazon on Price
Meal-delivery startup will deliver fresh produce for $4, a significant discount to Amazon and Instacart.
Bike messengers in Washington, D.C., in 2013.
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Postmates Inc. is expanding beyond food delivery from restaurants to bring customers groceries in 30 minutes or less. And the U.S. startup, which is backed by nearly $300 million, will use some of its venture capital to subsidize the cost, undercutting fees charged by Amazon.com Inc. and Instacart Inc.
The new service charges $3.99 for delivery on each order or $9.99 a month, under the brand Postmates Fresh. The name may sound familiar. AmazonFresh is the online shopping giant’s grocery program, which costs about $279 a year for the necessary Fresh and Prime subscriptions. Instacart charges $5.99 to $7.99 depending on delivery time, plus a service fee.