The latest Postmates ad campaign focuses on local businesses to engage consumers. / Postmates The latest Postmates ad campaign focuses on local businesses to engage consumers. / Postmates

Ahead of IPO, Postmates Ups Marketing Efforts in Key Urban Markets

Postmates is launching a new national ad campaign, following in the footsteps of market competitors Uber Eats, Grubhub, and DoorDash this year.

The delivery service will enact the first phase of its new marketing strategy this spring by advertising to diners on billboards, bus benches, and via dedicated wall murals around Miami, New York, and Los Angeles. The advertisements will feature messaging tailored to local audiences, “right down to the street they appear on,” according to a release.

Postmates also hinted in a prepared statement that its new creative material will be a part of an extended marketing campaign that will involve TV advertising in the coming months. Television is quickly becoming an integral part of how third-party delivery companies raise brand recognition, as they attempt to capture more restaurant partners and market share.

Last month, Uber Eats shelled out nearly $9 million on its first nationwide television campaign in partnership with the NCAA. DoorDash also rolled out initial national TV ads at the beginning of the year, highlighting restaurant chain partnerships with Wendy’s, Chipotle, and Chick-fil-A, among others. Meanwhile, Grubhub, Yum Brands official delivery partner has featured on multiple Taco Bell TV spots this year.

Local, Urban Markets

The company’s initial choice to roll out this campaign in dense, urban markets speaks to the delivery service’s city-focused roots, right down to the image of a bicycle rider for a logo. According to data analytics firm Second Measure, Postmates is the most popular delivery service in Los Angeles, taking up 42.6 percent of market share in the area as of December 2018. On a nationwide level, Grubhub, DoorDash, and Uber Eats all claim more market share.

Postmates has been gearing up on product launches, including a new shared ordering function called Postmates Party ahead of its expected IPO. The company confidentially filed the initial paperwork to go public earlier this year, according to Bloomberg. Postmates was valued at $1.85 billion in January.

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