Postmates files for IPO
The food delivery company filed for an initial public offering.
Postmates is the latest high-profile company to file for an initial public offering(IPO). The food delivery company confidentially filed for an IPO with the US Securities Exchange Commission(SEC).
Why did Postmates file for an IPO?
Postmates launched in 2011 when chief executive officer(CEO),Bastian Lehmann, had the idea to use independent contractors to use their own cars for food transportation-an Uber for takeaway. The app offers unlimited deliveries for $9.99 a month. The business especially helped small restaurants that couldn’t afford full-time delivery drivers. Now the service is available to customers of large corporations, like Walmart and Apple.
The company became popular after tennis star Serena Williams touted the convenience of the app. Because of the popularity of the service, Postmates has raised $700 million in capital and is a ‘unicorn’ valued at $1.85 billion. In a busy year for 2019 unicorn IPO’s, Slack, Uber, and Lyft are all slated to go public. Postmates has partnered with JPMorgan Chase and Bank of America to be lead underwriters on the IPO.
Is Postmates’ IPO worth $1 billion?
Postmates’ IPO could pay off well for investors. Though there are many other competing food delivery services, Postmates is the most used by customers, with 42.6% of the market. A source close to the company said that customers spend about $3,000 a year on deliveries from the app as well. The popularity of the service could be profitable to shareholders. Postmates will likely be one of many companies in 2019 that investors will be watching to see if they are really the successful unicorns they claim to be.
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