Postmates has raised $141 million in new funding from several investors, including round leader and existing backer Founders Fund.
The new round leaves the on-demand delivery startup at a valuation of about $600 million, the same as it was after a previous financing round.
Postmates — whose CEO and co-founder Bastian Lehmann described the fundraising process to Bloomberg as "super, super difficult" — now makes more than 1.5 million deliveries per month in 44 markets, and uses about 40,000 couriers.
Though Postmates didn't deliver on a pledge to be available in London by the middle of this year, it still plans on expanding internationally next year, Lehmann said. Postmates also has been promoting a membership program for $9.99 per month, which allows subscribers to have unlimited orders over $25 with no additional charge, and still wants to start delivering alcohol and roll out a one-hour delivery service for a $1 fee, according to The Wall Street Journal.
A couple other tidbits: Postmates also reportedly has held talks in the past with companies such as Amazon and Uber to be acquired, and Lehmann indicated that the firm could be interested in a merger at this point. The supposed acquisition talks with Amazon must have been interesting, as Lehmann has made a sport of attacking his bigger rivals, including criticizing Amazon's private label food delivery strategy last spring.
Lehmann likes to talk big. He also once said Postmates was better off because he hadn't listened to his investors. But that was before the express delivery market became so crowded. This funding also comes in a very tight market for new funding, and Lehmann admitted as much, so the company's ability to raise this new money should be seen as entirely positive, except for the fact that Postmates is valued at the same level as it was last year. That likely means that investors are not so happy with the amount of competition Postmates faces, nor the likelihood that it may not be profitable until the end of next year.
Postmates, Amazon, Uber, Grubhub, Deliv and others are all chasing the crown to be king of on-demand delivery. They are all looking to avoid the pitfalls that trapped an earlier generation of express delivery companies, and it seems like some market shake-up and some consolidation needs to happen sooner rather than later. Maybe an acquisition would be the best thing for Postmates. Either that, or it may need to drastically slow down the rate at which it's burning through its funding, at least long enough for a few other on-demand delivery startups to fall by the wayside.