Online delivery platform Postmates recently announced that it would partner with mobile payment and merchant services aggregator Square for merchant deliveries. The collaboration will enable retailers using Square’s payment platform to offer customers the option of having any item delivered.
Square acquired a food delivery service called Caviar in 2014 and already owns other food delivery services such as Entrees on-Tray. However, offering delivery via Postmates widens Square’s delivery range considerably. The deal is great for small Square merchants as they can now easily enhance the customer experience by providing rapid delivery of merchandise.
With around 300,000 couriers, Postmates currently delivers to 70% of U.S. households. Though Postmates is focused on food delivery, the platform delivers just about any product-which is fitting for Square, since some of its merchants produce items other than food. Recently the battle for market share in the roughly $17 billion food delivery industry has been heating up. Postmates’ competitors Uber Eats, Grubhub, and DoorDash have also recently created new partnerships as a way of expanding their companies’ reach. Postmates investing in a partnership that may result in deliveries of non food items gives them unique brand awareness with customers among digital delivery systems.
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