Postmates is an on-demand delivery service that has raised $16 million in Series B funding. Spark Capital led this round of funding and several existing investors followed on. The funding will be used for supporting its growth and to expand geographically. Spark Capital venture partner Nabeel Hyatt is joining the company’s board of directors in conjunction with the funding.
“We’re currently averaging thousands of deliveries per week. Customers who order more than 10 times per month contribute to more than 30% of order volume? customers who order more than 5 times per month contribute to more than 50% of order volume,” said Postmates CEO and co-founder Bastian Lehmann. “More importantly, is how quickly our supply is growing. We have nearly 2,000 active Postmates couriers on the platform in our four markets.”
Postmates has developed its own proprietary logistics software that dispatches and guides couriers through major metro areas for delivering local goods such as food, groceries, and retail goods since the company raised its Series A round in December 2012. And the company has also set up partnerships and promotional campaigns with merchants in San Francisco, Washington D.C., Seattle, and New York with Whole Foods, Momofuku Milk Bar, Hapa Ramen, etc.
“We are experiencing remarkable growth and strong national demand for our mobile platform,” said Lehmann. “This new round of financing and group of investors with their proven success in identifying potentially successful consumer products such as Twitter, Foursquare and Tumblr will guide us through this critical growth stage. With Spark’s support, we’ll continue to push the boundaries of ecommerce and logistics within local markets.”
Postmates has raised a total of over $22 million. The company previously raised a $5 million Series A round from Founders Fund and a $1.75 million seed round from SoftTechVC, Matrix Partners, Scott Banister, Naval Ravikant, Russel Simmons, Thomas Korte, Shervin Pishevar, Dave Morin, and David Sacks.
