MONEY

Postmates delivery service expands to Nashville

Jamie McGee
USA TODAY NETWORK - Tennessee
Postmates

Delivery service Postmates has expanded to Nashville, allowing residents to order laundry detergent, shampoo or a gourmet burger to their home or office.

Postmates advertises delivery for Jack’s Bar-B-Que, Fido, Rotier’s and other local restaurants, as well as general goods — school supplies, baby powder, cold medicine and soap. Consumers tap a button on their Postmates app and a courier brings their goods for at least a $5 charge.

The San Francisco-based company is the latest on-demand delivery company to launch service in Nashville, following ride-hailing companies Uber and Lyft, restaurant delivery service OrderUp and grocery-delivery company Shipt. Multiple on-demand lawn service companies have established a Nashville presence, and fuel-delivery service, Yoshi, recently entered the market, providing another outsourcing option for local consumers.

On top of a $5 or greater delivery charge, Postmates customers pay a 9 percent service fee and tip — what may be a welcomed fee for consumers strapped for time or a parent at home with a child in need of diapers or medicine. Postmates couriers receive 80 percent of the delivery charge and all of the tip.

"You are paying for convenience if you can’t get away," said Postmates spokeswoman April Conyers. "It’s pretty powerful for some people."

Postmates is available in two dozen cities and recently raised $80 million in new capital. The company is valued at more than $400 million, according to the Wall Street Journal, citing Postmates CEO Bastian Lehmann.

Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.