Dive Brief:

• Postmates has launched operations in one thousand more cities in the U.S. and is now available in 3,500 cities across all 50 states, according to a press release.
• The third-party delivery company now serves more than 70% of U.S. households and claims it currently delivers from 65 out of the top 100 restaurants in the U.S.
• To celebrate its expansion, the company partnered with Subway to offer $5 off a sandwich with a minimum purchase of $10 through Sunday, April 28.

Dive Insight:

In an increasingly competitive segment of delivery, the race is on to have the most markets and the most partners. Postmates is now the second nationwide delivery company following DoorDash, which reached into 50 states in January. Having this depth of markets and restaurants will allow each company to better compete, especially since Uber filed for an IPO in April, Postmates filed for a confidential IPO in February and DoorDash is rumored to be inching closer to one as well. Increasing profit margins will be key to attracting additional investors.

But since the top delivery companies have been expanding within the same regions and often have the same restaurant partners, many have been revamping their apps and ordering features to further differentiate themselves.

Postmates, which offers delivery from more than 500,000 restaurants, grocery and convenience stores and retailers, has been focusing not just on exclusive partnerships, such as its partnership with Sweetfin, but also additional customers. It joined forces with AEG Presents to offer in-app food ordering during Coachella as well as several other upcoming events. The company is also rolling out a group ordering feature, allowing customers close to each other to share delivery drivers and have their delivery fee waived.

Uber Eats also revamped its mobile app and website with a five point tracker and better options to cancel or reach a driver. The company is also testing out at-gate delivery for travelers at airports. Bite Squad is expanding into new regions as well, and is offering more breakfast delivery options. Grubhub partnered exclusively with Just Salad in April, marking its first restaurant partner to use technology from LevelUp, which Grubhub acquired in 2018. It offers loyalty programs and restaurant-branded apps for ordering and pickup, according to Skift Table.

Staying ahead of the game will be no easy feat for any of the companies in the third-party delivery segment. What is likely to come is more competitive fees and consolidation, but it will be interesting to see which brands are impacted by either trend.