Technology/Services

7-Eleven, Postmates Expand Delivery to Austin

Offering service in second market, with more high-density areas to follow

AUSTIN, Texas -- 7‑Eleven now offers on-demand delivery in Austin, Texas, the second market where the company has launched its new service. The first was last week in the San Francisco area. In both markets, on-demand delivery is powered by Postmates.

7-Eleven Postmates delivery

San Francisco-based Postmates is a technology and logistics company that operates a network of couriers. A user downloads the Postmates app through an iOS, Android or web app operated by Postmates, then scrolls through the list of retailers to select products they want to order. Postmates coordinates the delivery from the most convenient outlet and nearby courier to fulfill the customer’s order within an hour.

In Austin, 36 participating 7-Eleven convenience stores offer an assortment of products from hot foods and snacks to cold beverages and other convenience items.

“7‑Eleven’s founder, Joe C. Thompson Jr., used to say 7‑Eleven’s mission was to ‘give customers what they want, when and where they want it’,” said Raja Doddala, 7‑Eleven’s vice president of innovation and omnichannel strategy. “Through the modern technology that Postmates provides, we can fulfill that promise in a way we haven’t done before.”

The partnership with Postmates is 7‑Eleven’s first official venture into the on-demand economy and plays a role in the company’s omnichannel strategy to provide time-pressed customers solutions to their everyday needs.

“Through our partnership with Postmates, 7‑Eleven’s reach extends beyond our physical stores,” Doddala said. “The program should work well for us because it appeals to our customers who are more on-the-go, connected 24/7 and prefer fast-paced, urban living.

“Plus, we have market concentration in these geographic areas, which makes shopping with us through Postmates even more convenient for customers,” said Doddala, adding that “Postmates has figured out how to keep the Slurpee drinks cold and the Big Bites hot.”

Holger Luedorf, Postmates senior vice president, said, “By partnering with 7‑Eleven, we are able to offer both 7‑Eleven and Postmates customers access to groceries, fresh food and other goods across all markets that our companies are both operating in. In providing 7‑Eleven with a digital storefront and giving its team access to our fleet of more than 12,000 Postmates couriers, we are making the experience even more convenient for our joint customers.”

Doddala expects to expand delivery later this year to other areas with a high density of 7‑Eleven stores, such as New York, Los Angeles, Washington, D.C., and Chicago.

Dallas-based 7-Eleven Inc. operates, franchises or licenses nearly 10,500 7-Eleven convenience stores in North America. Globally, there are more than 56,200 7-Eleven c-stores in 16 countries. During 2013, 7-Eleven c-stores generated total worldwide sales close to $84.5 billion.

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