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Postmates

On-demand delivery platform
Pre-IPO
Medium risk

Cumulative funding in 2016-2019

Invest in Postmates

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
About the company

Postmates is an urban logistics and on-demand delivery platform that allows users to ship any item within the city for same-day delivery. Its platform connects customers with local couriers, who can deliver goods from any store or restaurant in minutes.

Postmates empowers communities to shop local with no waiting and businesses through Postmates API to offer delivery.

Market Opportunities

Postmates completes 5 million deliveries per month and expected to record $400M in revenue in 2018 on food sales of $1.2B.

The company currently operates in more than 4200 cities, recently tacking on another 100 markets to reach an additional 50 million customers.

Online Food Delivery Market is valued at $66B in 2019 and is projected to grow at a CAGR of 17.3 % during the forecast period to a net market size of $91B in 2025.

Risks

Postmates competes in on-demand delivery market and faces a strong competition from a number of firms, including Uber Eats and DoorDash. This may negatively affect its long-term viability and valuation.

Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.

Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.

Financials and Valuation

Postmates has raised a total of $850M in venture capital funding from investors, including Spark Capital, Founders Fund, Uncork Capital and Slow Ventures.

In October 2019 Postmates raised $250M in equity funding at a $2.4B valuation. Shares of Postmates are currently trading at $6.9 per share on the OTC market, which is equivalent to $1.8B valuation.

Postmates closest competitor is Uber Eats. In the Q1 2020 report, Uber Eats revenue accounted for ~20% of Uber's total revenue. Uber has a market capitalization of $60 billion (as of May 2020). Thus, it can be assumed that Uber Eats valuation is $12 billion. According to Second Measure, Uber Eats market share in the United States is 20%, and Postmates market share is 9%. Based on these numbers, Postmates could be valued at $5.4 billion in the public markets.
                  
The expected return on investment is 150%. Please note that this is an investment in a private company. The lockup period is 180 days after IPO date.

How Venture Investments Work
1. Searching for Companies

United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.

Publication
18 Sep
Minimum Amount
None
2. Buying shares

As part of our service for purchasing shares on the OTC market, for its traders and investors United Traders buys units in funds that own equity class common stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.

Shares Outstanding
Limited
3. Public Offering

United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

Public Offering Date
Pending
Estimated Gains
+150 %
4. Taking profit

After the Lock-up period is over, the investment position will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

Exit
̴ 2021
Early Exit

Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

For an investor the above means that the investment may be exited after paying a portion of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

What Are the Benefits of Investing with United Traders?

WE ARE A RELIABLE PARTNER

Our risk managers will support you throughout the entire transaction life. You can also contact us by phone: +7 495 646-15-57 or 8 800 333-66-81, or visit our office for a detailed discussion.

HIGH PROFITABILITY

Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We select companies that already demonstrate strong financials and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares in a pre-IPO subscription.

LOW ENTRY THRESHOLD

To qualify for a pre-IPO subscription, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $15,000.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

Invest in Postmates

This investment idea is no longer available. New applications are not accepted

View more ideas