Chipotle Mexican Grill is now offering food deliveries.
The restaurant chain formed a partnership with Postmates, a San Francisco-based startup that operates a network of couriers delivering goods locally.
The delivery service is available in 67 cities across California, Arizona, Colorado, Georgia, Florida, Massachusetts, Illinois, New York, Nevada, Pennsylvania, Oregon, Washington and Texas.
The cost of delivery ranges between $4.99 and $7.99 per order, depending on the distance.
Postmates typically charges a variable fee based on the distance traveled by the courier, but there is a cap on pricing for delivery with Chipotle.
The company employs over 10,000 couriers who deliver consumer goods, groceries, and food.
According to Re/code, Postmates delivered $500,000 worth of Chipotle orders in the first quarter of this year – before a deal was officially formalized.
The delivery service was announced in a call with investors.
Chipotle chief marketing and development officer, Mark Crumpacker, said that Chiptoel saw growth of 30% month-over-month growth since the company began delivery service with Postmates.
“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,” said Crumpacker during the call with investors via The New York Times.
“We weren’t sure whether the quality was going to be sufficient or whether they were following our rules.”
Chipotle Q1 2015 results
Chipotle Mexican Grill, Inc’s first quarter results were mixed. The chain posted an increase in profit for its first quarter, higher than expectations, while revenue fell shy of forecasts and same-store sales disappointed investors. Revenue is the money a business receives from the sales of its goods or services.
Net income for the quarter increased to $122.6 million, from $83.1 million last year. Revenue rose to $1.09 billion from $904 million a year ago.
Diluted earnings per share was $3.88, an increase of 47.0 percent.