DoorDash seeks restaurant and store partners to offer cardholders promotions, rewards, and discounts
By KATISHI MAAKE | Morning Brew | April 9, 2021
Two major delivery services—DoorDash and Instacart—are cashing in on pandemic success with plans to launch their own credit cards, sources tell the WSJ.
Our angle: DoorDash’s card is particularly interesting, as it’s reportedly seeking restaurant and store partners to offer cardholders promotions, rewards, and discounts. Instacart’s, at least for now, is focused only on straight-up cash back.
- DoorDash also wants to provide cardholders premier access at events, “such as curated experiences with participating merchants.”
- The company is currently fielding offers from 10+ banks and fintech companies, including JPMorgan Chase and Deserve. Instacart has reportedly already picked JPMorgan.
A win-win: DoorDash’s card could drive more traffic to its partners, while encouraging customers to continue to use its service.
- FWIW, both companies have recently expanded beyond grocer and restaurant partnerships, into segments like office supplies and apparel.
Once this is all over
The credit cards are meant to help DoorDash and Instacart hold onto their newly expanded customer bases as the pandemic wanes and demand for delivery (most likely) softens.
A plurality of US adults (43%) plans to shop mostly in-person post-pandemic, according to our March 2021 Morning Brew-Harris Poll survey. And while respondents expressed some desire to continue using delivery apps and ordering groceries online, DoorDash and Instacart are likely bracing for some sort of backslide.
Rewards-based cards that help defray the cost of delivery fees could resonate:
- 50% of US adults say they’re now more sensitive to the cost of items than they were pre-pandemic, per our survey.
- A recent dunnhumby survey corroborates this: 80% of US shoppers are taking at least one action to seek more value when they grocery shop, deprioritizing speed.
Our read: These credit cards are just another sign of how entrenched the app-based delivery space has become over the last year. As the WSJ points out, JPMorgan doesn’t partner with just anyone. — KM