Postmates has launched its delivery service in 134 new cities, bringing its total coverage to 550 municipalities and 60% of U.S. households. The company is aiming to reach 70% of U.S. households by the end of 2018.
The expansion follows a $300 million fundraising round in September that valued the company at approximately $1.2 billion. This has been a major year for the delivery provider, including forming a partnership with Walmart in April.
“Unlike other on-demand services, Postmates sees the cities we operate in as our warehouses — by making every merchant and restaurant accessible through the Postmates app,” said Bastian Lehmann, Co-Founder and CEO of Postmates in a statement. “Our mission is to support local communities through local people delivering goods from local merchants. In 2017, Postmates’ fleet earned over $200 million in the U.S., and merchants on the Postmates platform generally see 4X the growth in sales.”
Competition is heating up in the third-party delivery industry: Instacart raised $600 million earlier in October and plans to expand its presence in North America, while DoorDash raised $250 million in August and entered its own partnership with Walmart in April.