Ordering on Postmates is an easy way to get food delivered straight to your door, but you might have noticed that it isn’t always the most affordable option. Why does Postmates charge what they charge?
The Postmates pricing system is worth a closer look. Not only are you paying for the food, but service fees, delivery fees, and tips. It can add up, so it’s good to understand how Postmates pricing works. That way, you can try to make your order as affordable as possible.
Article Contents
What is Postmates? On-Demand Local Delivery
Postmates is an on-demand delivery app that allows users to order delivery from local restaurants and stores. It is primarily a food delivery app, but it’s possible to create a custom order to get deliveries from any store. Customers pay for orders electronically in the Postmates app, and Postmates couriers deliver the orders.
How Much Does a Postmates Delivery Cost?
The final price you pay for a Postmates order is the sum of food costs, taxes, delivery fees, and service fees. The best way to get an estimate on a Postmates order is to download the Postmates app, enter an order, and visit the checkout page. The checkout page will show how much the order costs, and how much you’ll pay in delivery and service fees.
An order on Postmates = Cost of Food + Tax + Delivery Fee + Service Fee + (Optional) Tip
Are food prices higher on Postmates?
Food prices listed on Postmates may be higher than in restaurants, but Postmates is not to blame for the markup. Merchants provide Postmates with pricing, and they may choose to list higher prices on Postmates to help make up for the fees that Postmates charges to restaurants.
Visit the checkout page to see order fees and total cost
About Postmates Delivery Fees
The Postmates delivery fee is $0.99 – $3.99 for partnered restaurants and $5.99 – $9.99 for all other merchants. During periods of higher demand, Postmates may charge “Blitz” pricing, a multiplier added to the delivery fee.
You can see the delivery fee for a restaurant by looking underneath the restaurant name as you browse, and on the order checkout page. Partner merchants are those who have an official relationship with Postmates, indicated in the app by a gold infinity sign underneath the restaurant name.
Blitz pricing kicks in when order demand is high
How to save on Postmates delivery fees
- Search for restaurants that are temporarily offering free delivery
- Get Postmates Unlimited: For $9.99/month, get free delivery and no Blitz pricing on all orders over $12
- Watch out for Blitz pricing and order during times of lower demand
Watch out for promotions offering free or discounted delivery!
The Postmates Service Fee
In addition to delivery fees, Postmates also charges a service fee. The service fee is a percentage of the order subtotal. The service fee varies, and is typically around 15%. Postmates does not list the exact service fee percentage for an order, so you’ll have to crunch the numbers yourself to see exactly how much they are adding.
You can see the service fee on the order checkout page, listed in the ‘Tax & Fees” line item. Tap the small “i” next to Tax & Fees to see the service fee added to an order.
For orders under $12, there is a small order fee of $1.99. The minimum order amount that triggers a small order fee may vary from city to city. The app will warn you about the small order fee and suggest that you add more items to avoid it.
You can’t get around the Postmates service fee or taxes. They are added to every order, so if you want to save, focus on reducing delivery fees or finding promotions that can reduce the total cost of an order.
On the checkout page, tap “Tax & Fees” to see more detail on fees
Postmates Cancellation Fees
If you cancel your Postmates order, you may have to pay cancellation fees and other charges depending on the status of your order when you cancelled.
- There is no cancellation charge if you cancel before Postmates has placed your order with the merchant and your Postmates courier has not arrived at the restaurant
- You pay food costs and a cancellation fee if Postmates has placed the order and your courier is on the way to pick up the order
- You pay food costs, the delivery fee, and the service fee if the order has been picked up and is on the way to you
If you were charged a cancellation fee and believe that it was unfair, contact Postmates customer service to try to get a refund.
How to Save on Postmates: Promo Codes & Postmates Unlimited
There are a few reliable ways to save on Postmates.
Postmates promo codes: New Postmates users can save on their first order by using a promo code or sign up link.
Existing users will have a harder time finding free credits and working promo codes. The most reliable way for existing users to get free credits is to refer friends to the app using your referral link. You’ll receive credits when they make their first order.
Temporary promotions: Keep an eye out in the Postmates app for temporary promotions like free delivery at certain restaurants, or temporary promo codes that work for all users. Here in Los Angeles, I get text messages occasionally from Postmates offering temporary promo codes and free delivery at certain locations.
Postmates Unlimited: For $9.99/month, Postmates Unlimited offers free delivery on orders over $12, and it eliminates Blitz pricing. If you use Postmates more than 3 times a month, Postmates Unlimited is a good value.
How Does Postmates Pay Delivery Drivers?
The delivery fee the customer pays does not necessarily go entirely to drivers. Postmates drivers are paid according to a formula: Pickup fee + drop-off fee + wait time at the restaurant + per mile between pickup and drop-off + promotions. Drivers receive 100% of tips.
Overall pay for Postmates drivers is around $8 – $15 per hour, with most orders paying around $4 – $10. Drivers earn the most from tips and promotions, but not all cities offer regular promotions. Make sure to tip in the app, or tip the driver with cash.
Learn About Delivering with Postmates
Why You Should Always Tip Your Postmates Driver
Without tips, many Postmates orders can pay as low as $3 – $4. For that reason, you should always tip your Postmates driver unless they were unprofessional. Keep in mind that most of the issues that happen during an order are not the driver’s fault, so try not to take out your dissatisfaction on the driver by withholding a tip.
It’s true that Postmates should pay a fairer share to their delivery drivers, but in the mean time, customers should realize that drivers depend on tips. And it’s in your best interest: If drivers don’t feel the job is worth it, driver supply will drop and wait times will increase for you.
How to Speed up the Postmates Delivery Process
Help your driver reach your door rer by doing these things:
- Turn on your porch light
- Give clear instructions on how to find your location
- Order from partnered restaurants (More streamlined delivery process)
- Communicate with your driver. Text them if you forgot anything in the delivery instructions
More Postmates Tips
Henry says
Tried Postmates and all these only makes sense to its shareholders. They stiff restaurants, drivers, and consumers (who are expected to generously tip to make up for underpaying drivers). This adds about 30% to the food cost. When they IPO, shareholders then become instant millionaires and billionaires. Makes perfect sense, right?
Dawn says
I’m sick of all the fees. The more you order the more the service fee goes up, then you have tax and delivery. Then ppl think its ok to demand a tip??? I don’t usually order from postmates for this exact reason. I wish more ppl would stop ordering because they are going to far.
Not Today says
What type of twisted comment is that ??
It’s not the customers job to make sure that the driver is happy doing the job that they signed up for. It’s the companies responsibility to make sure their drivers are paid enough and are happy because, like any other business , if they don’t have employees they don’t have a company.
Tips should never be expected from a customer. Especially when your charging to deliver it!!
DougH says
Without tips, Postmates simply doesn’t pay enough to make it worthwhile for drivers. If you believe the company is failing in their responsibility to sufficiently pay drivers, I encourage you to boycott the company and take your business elsewhere. Otherwise you’re benefitting from the bad business practices you claim to oppose.
LEIGH T NUZUM says
HOW MUCH IS THE CANCELLATION FEE???
DougH says
Postmates only tells you the exact cancellation fee when you cancel an order. There may not be one general fee. It varies