Chipotle Mexican Grill to start Food Delivery Service with Postmates

Fast food chain Chipotle Mexican Grill has started food delivery service with logistics company Postmates, based in San Francisco. The company operates a network of couriers that delivers goods locally.

According to reports, Chipotle’s food delivery service will be available in 67 United States cities within the state of Colorado, Arizona, Florida, California, Massachusetts, Nevada, Georgia, New York, Illinois, Washington, Oregon, Texas and Pennsylvania. The delivery cost will vary between $4.99 and $7.99 per order. The cost of an order will depend on the distance.

Postmates, which uses mobile phones to receive orders and dispatch delivery drivers, charges a variable delivery fee which depends on distance travelled by the courier. The company’s latest deal with Chipotle has capped pricing. There are over 10,000 couriers that work for Postmates to deliver various items.

Last month, Postmates, which was founded in 2011, announced collaboration with Starbucks. As per the company, the deal was a pilot in Seattle in the second half of 2015. While answering why Chipotle has signed a deal with Postmates, Chipotle chief marketing and development officer Mark Crumpacker said that company noticed month-over-month growth since Postmates started delivering Chipotle.

During the call with investors, Crumpacker said, “There have been a lot of people that have been delivering Chipotle through various services over the years and we’ve tried in a lot of cases to shut them down”.

During investor call, Chipotle said that sales at stores were up about 10.4% compared to the same quarter a year ago. According to the company, sales were up 20.9% at $1.09 billion. About 6.6% of sales were through online orders, the company stated. Earlier, Chipotle ended a partnership with a large pork supplier. According to the company, the partnership was broken off because it did not meet humane standards.