More evidence that meal delivery companies are aggressively fighting for market share appeared with the newly announced partnership of Chase and DoorDash. The latter company has overtaken Grubhub as the meal delivery market share leader, and is continuing to use discount pricing to gain more customers.
This deal also enables Chase to offer more benefits to its credit cardholders who will receive free and/or discounted delivery subscriptions from DoorDash. Food delivery has become a crowded field but there is still room to grow, as restaurants know that they must make this option available to customers craving convenience and immediacy.
Delivery company profits suffer from continued discounts and restaurants pay hefty fees that impact their low margin businesses, but right now, hungry at-home diners will find this meal service offer quite appetizing.
A Fast Company article discusses more on this topic, which is excerpted below:
How hungry are you right now? Hungry enough that you would pay extra for food delivery?
Probably, but you may not have to if you own a Chase credit card. The financial giant just announced a partnership with DoorDash to offer free subscriptions to DashPass, the food-delivery company’s subscription service. Specifically, the offer is available to people who own Chase Sapphire, Freedom, and Slate cards.
To take advantage of the offer, all you have to do is set an eligible Chase card as your default payment method in the DoorDash app and activate a DashPass membership by December 31, 2021, which means you have plenty of time. Once that’s done, you’ll get the following:
Chase Sapphire members: Free DashPass for at least a year.
Chase Freedom and Slate members: Free DashPass for three months. After that, you get a 50% discount for nine months.
Note that neither offer is permanent—meaning once it’s over, you will have to pay for DoorDash’s “free” delivery service, and that currently costs $10 a month.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group