In March, courier service Postmates launched a $9.99 monthly subscription option that excuses its purchasers from delivery fees and service fees when they order from its partner “Plus” vendors. The company says these “Plus Unlimited” customers order 8.6 times more often and their basket sizes are 30% larger than its average customer (initially, the option was only available on orders of $30 or more).
Today, Postmates is expanding the subscription option from 10 to 16 cities—adding Atlanta, Austin, Dallas, East Bay, Houston and Philadelphia—and is lowering the minimum Unlimited order from $30 to $25. This expansion also signifies an expansion of its “Plus” vendor partnerships. While Postmates will deliver from anywhere, regardless of its relationship with a store, its partners pay a fee of about 20% of an order in exchange for preferred placement and inclusion in the subscription service offering—which adds a twist to the standard on-demand business model.