CARTO Case Studies Visualizing the Transformation of Commerce & Communities through On-demand Services
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Visualizing the Transformation of Commerce & Communities through On-demand Services

CARTO
Platform as a Service (PaaS) - Application Development Platforms
Sensors - GPS
Cities & Municipalities
Transportation
Logistics & Transportation
Procurement
Last Mile Delivery
Smart City Operations
The challenge faced by Postmates, a leader in on-demand delivery in the US, was to efficiently connect consumers with merchants and deliver goods from any merchant to the customer's door in minutes. The company had to deal with the complexities of location data, as location carries weight and meaning. The company had to understand the preferences of customers which varied throughout the year, the week, and within a city itself. They also had to deal with the challenge of delivering a wide variety of items, from furniture to late-night medicine runs and diapers, across 300 cities in the US and Mexico.
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Postmates' customers are diverse, ranging from busy parents, senior citizens, to people with mobility issues. The company covers 1/3 of US households, which is a lot of location data. The preferences of their customers change throughout the year, the week, and within a city itself. For example, they are healthier in summer than in winter, and their data can reveal when the flu is breaking out, and when ice coffee season is about to start. They also observe how what their customers want changes throughout the week. For instance, 30% of all bagel deliveries happen on Sunday and it’s a little bit more evenly distributed in New York City.
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Postmates developed a solution that enabled anyone to tap a button on their phones and get anything from any merchant delivered to their door in minutes. They believed in the philosophy that their cities, towns, and communities are their warehouses. The company was able to deliver over 175 million items across 300 cities and Mexico, at all hours of the day. They also developed an e-bike and scooter program in multiple cities, and a robotics unit to increase efficiency in moving food products and parcels. They also used location data and demand patterns to help their larger partners plan how and where to launch new stores and penetrate new markets.
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Postmates has been successful in giving local retail a new lifeline to reach customers. Corner stores once confined to corners are now reaching new audiences. For merchants who join the platform, they see 3.7x growth after joining Postmates. Once a partner joins the platform, Postmates is able to expand their reach and introduce them to new customers. They are also able to save customer time and Postmates time based on an integration with a merchant. They are also able to move things further, in one specific example, dropoff distances increased by 42%. Postmates also uses location data and demand patterns to help their larger partners plan how and where to launch new stores and penetrate new markets.
Postmates is currently available in 300 cities in the US and Mexico, completing about 3 million deliveries a month with an active fleet of 150,000 postmates transporting over a billion dollars worth of goods.
Postmates' customers have already saved more than 11 million hours through the platform.
Postmates' fleet has traveled over 200 million miles and generated over two hundred and fifteen million dollars in earnings.
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