9 May 2022


Postmates Delivery Services SWOT Analysis

Format: APA

Academic level: College

Paper type: Research Paper

Words: 669

Pages: 2

Downloads: 0

Strengths of Postmates Delivery Services

Postmates Delivery Services is an easily recognizable brand with appropriate financial and technological investments that are popular among customers and prospective customers in the United States. Its base of operations covers a large geographic location include major cities like Arizona, Northern and Southern California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Massachusetts, and other metropolitan towns. The Courier Service Company has strategically aligned its activities to meet the demands of its target market that comprises of individuals who are willing to spend money for service and goods deliveries by handing over work with the aid of technology. 

Postmates Delivery employs the use of technology by taking advantage of the fact that 80 percent of Americans have access to the internet through home-based internet, smart phones and at work. The company specializes in delivering everything from electronics, groceries, and medication. The company does not therefore limit the range of goods and services it can deliver. It utilizes couriers and deliverers closest to the site of delivery and therefore effectively delivers goods within the hour. Unlike contemporary courier, services that are strategically located in major cities, this company utilize a flexible yet competitive work force that ensures customer satisfaction. The company also utilizes ever-growing technological innovation that encourages access by young members of the society. The existence of traffic jams enhance the effectiveness of services delivery among clients considering that couriers closest to customers deliver goods unlike conventional courier services that utilize company resources to deliver goods and services. This reduces the company overhead costs while ensuring customer satisfaction.

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Weaknesses of the Postmates Delivery Services

Postmates Delivery Services faces stiff competition from better-established companies like Uber and Amazon in a crowded market for supremacy. The company does not deliver commodities like alcohol and cigarettes and therefore they do not satisfy all client demands as advertised. Thirdly, the fact that the Postmates Couriers are independent individuals may cause failure in delivery of goods because all the couriers may be busy attending to their own events. The independence of the couriers does not guarantee the delivery of the goods. 

Another weakness comes from the fact that the company does not have a direct relationship with some of its employees therefore the employees are not directly answerable to the company management regarding the quality of services they deliver. 

Opportunities of the Postmates Delivery Services 

The Postmates Deliveries Services client base has been growing with more than 80,000 orders per week across more than 30 metropolitan cities in America. The funds raised in their operations provide the company enough capital to foresee economic upheavals. It’s growth allows the formation of partnerships with other businesses like Starbucks that enable further growth that spearhead business and technological advancements that the business can easily take advantage of. Postmates also slowly accumulate the number of retailers therefore expanding the warehouse from where clients can easily access goods. 

The company has 200 information technology employees from the Ivy League who provide a strong backbone to technological innovation. This team of employees looks for patterns within the market that could create new forums to meet client needs. The human resource is a resource that helps the company in the long term.

Threats Faced by Postmates Delivery Services

The Postmates Delivery Services faces stiff competition from well-established courier companies like Amazon, Uber, and Lyft. These companies have wide geographic location, better financial capital, and warehouses that enhance their services delivery to clients who are similar to Postmates Delivery Services. The company faces the threat of clients who indulge in the delivery of dangerous and illegal goods like guns and drugs. This predisposes clients and couriers in potential risk from unscrupulous individuals. Unscrupulous individuals may take advantage of client information and therefore cause harm to unsuspecting clients. The openness of their operations does not guarantee security to both clients and courier service providers.

Another threat comes from political and civil unrest. Delivery of services and goods to areas affected by protests and riots presents the business with steep threats. Employees and clients equally may run the risk of injuries or loss of lives. 

Lastly, changes in fashions and trends among clients may affect the stock that Postmates invests. This predisposes the company to the threat of overstocking goods that clients might soon ignore. This is a potential financial threat that might affect its stability.


Sundararajan, A. (2016). The sharing economy: The end of employment and the rise of crowd-based capitalism .

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StudyBounty. (2023, September 16). Postmates Delivery Services SWOT Analysis.


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