Postmates Adds Grocery Delivery, Undercutting Amazon on Price

Dinner Wars: Grocery Delivery Gaining Momentum Over Meal Delivery

Postmates Inc. is expanding beyond food delivery from restaurants to bring customers groceries in 30 minutes or less. And the U.S. startup, which is backed by nearly $300 million, will use some of its venture capital to subsidize the cost, undercutting fees charged by Amazon.com Inc. and Instacart Inc.

The new service charges $3.99 for delivery on each order or $9.99 a month, under the brand Postmates Fresh. The name may sound familiar. AmazonFresh is the online shopping giant’s grocery program, which costs about $279 a year for the necessary Fresh and Prime subscriptions. Instacart charges $5.99 to $7.99 depending on delivery time, plus a service fee.

Read more at Bloomberg.

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