Key Takeaways
- Postmates pricing includes food cost, taxes, service, and delivery fees, with possible extra charges during peak times.
- Delivery fees range from $1.99 to $9.99 for Partner Merchants and $5.99 to $9.99 for other restaurants.
- Service fees are variable, and cancellation fees apply based on order status. Blitz pricing increases costs during busy periods.
- Postmates accepts tips, significantly impacting overall order cost, with a default tip setting of 20%.
How Much Does Postmates Cost?
The cost of using Postmates includes the price of your food, applicable sales taxes, and additional fees.
Prices for food items on Postmates are typically higher than in restaurants due to service and delivery fees, making the overall cost of ordering through Postmates more expensive compared to dining in or using other delivery services like DoorDash or Grubhub.
- Delivery Fees: These range from $5.99 to $9.99 for standard orders but are reduced to between $1.99 and $3.99 when ordering from Partner Merchants of Postmates.
- Service Fees: Postmates charges a variable service fee based on the local area and the specific restaurant from which you’re ordering.
- Cancellation Fees: These fees vary depending on the circumstances of the cancellation request.
In addition, you’ll also see what is called Blitz Pricing.
Similar to surge pricing in rideshare apps, Postmates increases prices during busy times, potentially raising your order cost up to 1.25, 1.5, or even 1.75 times the normal rate.
Expect Blitz pricing during peak meal times, especially on weekends and weekday lunch hours.
Lastly, expect to tip.
Tipping Postmates drivers is encouraged, with a default suggestion of 20% of your order total in the app, which can be adjusted based on the service quality.
Drivers receive 100% of tips, providing a significant part of their earnings.
Pro Tip:
Don’t be surprised if you see a charge on your bank account titled “Postmates temp auth“. This is normal and is simply a hold on your card until the transaction clears the Postmates system.
Why are Postmates Fees so High?
Postmates fees are high due to market dynamics and cost adjustments.
The company charges what consumers are willing to pay, and fees may increase in response to external factors like the COVID-19 pandemic or regulatory changes, such as California’s Proposition 22.
Essentially, higher fees reflect the interplay between consumer demand, operational costs, and legislative impacts.
Comparing Postmates Costs Versus Others
When comparing Postmates with Uber Eats and Grubhub, it’s essential to note the differences in their fee structures.
Postmates Fees vs Uber Eats Fees
Uber Eats, similar to Postmates, charges both a service fee and a delivery fee. The service fee with Uber Eats is calculated as 15% of your order subtotal.
Delivery fees are dynamic, influenced by the proximity to the restaurant and the availability of drivers in your area. During peak times, you might notice an increase in delivery fees due to surge pricing, with fees typically ranging from $0.99 to $7.99.
Uber Eats also implements a small order fee if your subtotal is below a certain threshold, which varies by location but can be avoided by adding more items to your order.
Importantly, Uber Eats drivers, like those for Postmates, retain 100% of the tips they earn.
Related: Postmates vs Uber Eats
Postmates Fees vs Grubhub Fees
Grubhub usually comes in as the cheaper option when compared to Postmates. Its delivery fee can range from $0.99 to $9.99. However, you’ll normally see delivery pricing on Grubhub fall somewhere between $1.99 and $6.99.
Grubhub, like competing delivery services, also bases prices on location, driver availability, and demand.
The New York Times created a useful chart comparing the delivery fees when using Postmates, Grubhub, DoorDash, or Uber Eats. You can see the chart here.
How to Save on Postmates
Looking to save on your Postmates orders without sacrificing the convenience? I have two effective strategies for doing so.
First, there’s using a Postmates promo code. These can significantly reduce your costs, with new users benefiting from up to $100 off their first few orders.
Also, sharing your own referral code grants you a $25 credit after a friend makes their first order.
For consistent savings, consider joining Postmates Unlimited. With an annual fee of $99 or a monthly option at $9.99, this service waives delivery fees for orders above $15 (restaurants) and $30 (groceries), plus a 5% discount on service fees.
Membership includes exclusive deals, discounts, and perks, like a 10% discount on your first three Uber rides each month.
You can easily cancel the subscription by toggling auto-renew to “off” in the app, enjoying benefits till the end of the current period.
Frequently Asked Questions
Does Postmates Charge for Pickup?
No, Postmates does not charge for pickup. You only incur delivery fees when you have an order delivered to your door. When you do a pickup order, you’ll just get charged for your food plus taxes and the service fee.
How Much Does Postmates Charge Restaurants?
Postmates charges restaurants a 15%-30% commission on orders and a direct deposit fee of 0.80%- $5. Optional tablet rentals are $5/month. Partner restaurants avoid processing/rental fees, saving 3%-6% on fees with free electronic order processing on provided tablets.
Can I Get a Refund if My Delivery is Late?
Postmates offers a $15 credit if your Postmates delivery arrives more than 60 minutes after the original time you selected. However, you can use this offer once per month.
Is Postmates Owned by Uber?
Yes, Uber owns Postmates. Uber transferred almost $3 billion in stock to Postmates when the merger happened in 2020.
During the merger, Uber announced that Postmates will continue to operate as a separate entity. However, it’s always possible that Uber could decide to merge its Postmates workers into the Uber Eats platform as time goes on.
