San Francisco, CALIFORNIA: Food supply participant, Postmates Inc. has confidentially filed for its IPO as indicated by the administration in its interview final yr. This is anticipated to be among the many first high-profile tech IPOs of 2019 with the likes of Uber and Lyft preparing for a similar within the coming months. Postmates has not offered any particulars with respect to the timeframe and the value vary of the providing. Also, the confidential nature of the submitting ensures the absence of any particulars within the type of income, development, profitability, and so forth.
However, what we do find out about Postmates is the truth that the corporate is about eight years outdated and operates within the extremely competitive house of food supply which is led by Grubhub (NYSE:GRUB). The competitors on this $200 billion US restaurant supply market has elevated with the arrival of Uber Eats which has been progressively capturing Grubhub’s market share and Postmates’ transfer to get listed is definitely anticipated to warmth up this rivalry. While Grubhub controls about 50% of the market, Uber Eats is a distant second with 21% market share. DoorDash comes third on the listing with a 15% market share and Postmates is fourth at about 10%. In truth, the corporate had thought of a merger with DoorDash just lately, however the transfer to go public implies that the merger talks have been put to relaxation.
Postmates’ supply providers embody restaurant food, groceries, packages, and different gadgets though restaurant supply accounts for majority of its revenues. It has 65 of the highest 100 US eating places on its platforms, operates in about 400 cities, and covers practically half of all US households. Its largest restaurant partnership is with Chipotle Mexican Grill (NYSE:CMG).
In phrases of valuation, the corporate is way behind Grubhub and acquired its final funding spherical of $100 million at a valuation of $1.85 billion which places in within the small cap class on itemizing. On the opposite hand, Grubhub is at present working with a market capitalization of over $7.5 billion and that is after the autumn in value because of the competitors from Uber Eats.
We should wait and look ahead to Postmates’ IPO providing particulars and the valuation at which the corporate intends to listing itself within the coming weeks.