Postmates is spreading its tentacles beyond restaurant delivery by venturing into grocery delivery with a heavily funded war-chest. With a track record in restaurant delivery, the company announced a Postmates Fresh program that targets to deliver fresh organic groceries in 30 minutes or less. The new program rolls out in Los Angeles, New York’s Manhattan and the startup’s hometown of San Francisco.
In a bid to give its two main challengers a run for their money, Postmates is delivering an order for $3.99 or at a monthly fee of $9.99. In contrast, rival Instacart has a service fee on top of the normal charge of $5.99 per order. This varies up to $7.99 for every order pegged on time of delivery and store. Amazon on the other hand offers a $14.99 monthly subscription to Fresh and a $99 annual membership to AmazonFresh.