Food delivery startup Postmates plans an IPO later this year. Find out what you should know about this event right now.
Why is it important?
If you want to take part in an initial public offering during the upcoming months, you have a variety of companies to choose from. Slack, WeWork, Postmates are the most interesting ones. Given the fact that, on average, the IPOs of 2019 have disappointed investors, it’s interesting to know whether Postmates has a chance to succeed or not.
Postmates is a unicorn company that has about 10% of the food delivery market and occupies the fourth place after UberEats, GrubHub, and DoorDash. The company’s current valuation is at $1.85 billion. A good thing is that the prospects of the food delivery market area are immense. According to estimates, its overall capitalization may exceed $100 billion. If Postmates manages to retain and increase its market share, it will have great potential as well.
The main challenge for the company is intense competition. It doesn’t offer a unique product or service, so it needs to pursue an active strategy that will allow it to win over new clients and hold the old ones. So far, it made some strong moves: it stroke some prominent partnership deals and reduced delivery cost through the innovative on-demand delivery option. Both steps increase the odds that the firm will continue to grow. In addition, it’s necessary to mention that Postmates delivers not only fast food, but also groceries, alcohol, and other items from local stores. That’s certainly its strong point as well.
Postmates has done very well in the United States during recent years and is now operating in 3,500 cities across all 50 states. It’s expected to show $400 million in revenue in 2018. To make a conclusion, there are all the reasons to bet that its IPO will be a success.