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Postmates lowers minimum order price for monthly subscription service

TechCrunch TechCrunch 21/06/2016 Megan Rose Dickey

Postmates is lowering the price of its minimum order size for Postmates Plus Unlimited, the startup’s $9.99 a month subscription service. When Postmates launched the service in March, it offered free deliveries on all “Plus” orders over $30, minus the service fee. Starting today, you only have to order $25 worth of goods from Plus merchants in order to get free delivery.

Postmates is also pushing Plus Unlimited into six additional markets: Atlanta, Austin, Dallas, the East Bay Area, Houston and Philadelphia. Although Plus Unlimited works in all of Postmates’ markets, Postmates does not push the offering to customers until it has a solid list of Plus merchants to offer people.

When Postmates first launched Plus Unlimited, the company wanted to be really careful that the product had a strong growth margin, Postmates VP of Growth Kristin Schaefer told me. The program has done significantly better than Postmates thought it would from a transactional standpoint, with customer basket sizes being higher than they expected.

The average subscriber orders 8.6 times more than an average Postmates customers, with basket sizes 30% higher than the average customer. Postmates declined to share information around how many people are have signed up for the subscription service, but Schaefer said that people who have signed up are ordering about nine times per month.

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