Sometimes in order to get a good understanding of the trends happening in the stock market, Jim Cramer goes off the tape to take a closer look at privately held companies disrupting their industry. This way he is not surprised when the trends from the private sector start to impact some of his favorite stocks.
One of those innovative companies is San Francisco-based Postmates, a private company that provides on-demand delivery service for several markets around the country. Some might even call it the Uber for couriers, because you can use its mobile app to get practically anything delivered within an hour for a small fee.
Many are wondering if Postmates will take share from Amazon, as it can now provide delivery from small-businesses around the community that previously did not offer that service.
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Back in April, Cramer spoke with Postmates co-founder and CEO Bastian Lehmann on how it managed to score these big deals and what makes it different from any other courier service.
"The idea behind Postmates is what if you can use the city as a warehouse," Lehmann said. (Tweet this)
The CEO explained that rather than utilizing the energy to ship an item from out of state through an online purchase, clients can now find a store that will deliver that product through his company.
Cramer speculated on whether Postmates could be dreams come true for small businesses all over America, as they now have the ability to compete with Amazon.
"A huge part of the mission was to give retailers in cities better weapons to fight against Amazon, because you know what? They've been bullied around," Lehmann said.
The CEO added that he has heard feedback from his own friends who work in the retail spaces that they have found employment difficult, along with customers who go to stores and shop and then buy a product on Amazon. He believes that the cumbersome environment of the retail space is what is driving this behavior. "The inventory is locked, and we want to help unlock it," he added.
Postmates also provides opportunity for employment that is unparalleled to the competition. If someone is interested in working for Postmates as a courier, they can simply go to www.postmates.com/jobs and someone will contact them within 24 hours. If they are selected, the company will do an orientation in a car, scooter or bike and then they join the team.
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"It's America's best part-time job. That's what it is. It is very complimentary income to another job that you are doing," he said.
Lehmann explained that what makes Postmates unique for couriers, is that it matches the insurance that both Uber and Lyft currently offer. That is $1 million liability insurance on both sides, regardless of whether couriers are in a motorized vehicle. It also additionally offers a $50,000 occupational accident insurance, which covers medical expenses whether or not the person has health insurance.
The CEO shared with Cramer that, three years ago, when it initially started offering Chipotle deliveries, it received a cease-and- desist request from Chipotle. However, Postmates ignored it and continued with the deliveries.
"I think what happened is over time that they warmed up to the idea, first of all that there is a very persistent start-up run by a very stubborn, persistent German founder and an equally stubborn American co-founder. And, on top of that, we showed them that we can deliver the quality that they want," he said.