Food delivery startup Postmates files for IPO

Another popular startup has joined the IPO race: Food delivery startup Postmates has filed initial paperwork to go public.

The company confirmed its plans in an announcement on its website.

San Francisco-based Postmates launched in 2011 by co-founders Sam Street, Sean Plaice and Bastian Lehmann, who is also the company’s CEO.

The company is considered a pioneer in the on-demand delivery industry and currently services 385 cities across the US and Mexico. Although customers can still have random items delivered from stores, from phone chargers to cupcakes, it’s become a go-to network for restaurant delivery. It also handles other deliveries for partners such as Apple and Walgreens.

It even has the stamp of approval from celebrities. Last month, Kylie Jenner revealed she spent $10,000 with the service in 2018.

The company, which has raised more than $675 million in funding to date, was valued at $1.85 billion in January.

Postmates is one of a horde of “unicorn” companies — privately-held startups valued at $1 billion or more — expected to go public in 2019. Others include Uber, Lyft, Pinterest, and Airbnb.

Just last week, Postmates’ chief financial officer Kristin Schaefer spoke with tech news site The Information about the power of the company’s unlimited delivery subscribers, who pay $9.99 monthly (or an annual $96 fee) for free deliveries over $15.

Schaefer also said 2019 is a good time for Postmates to go public given investor demand, thanks in part to the success behind businesses like Uber Eats.

Although Postmates is not yet profitable, Schaefer anticipates that will change soon.

“We can be profitable in a couple of quarters,” Schaefer said. “I know lots of companies say that, but we definitely could.”

In addition to Uber Eats, Postmates also competes with DoorDash, Amazon and industry GrubHub.

Bloomberg first reported the news of the IPO on Thursday.