Today DoorDash announced its first-ever partnership with a credit card company. The food delivery startup has teamed up with Chase to offer DashPass subscriptions to certain Chase cardholders, according to a press release from DoorDash.
The DashPass is DoorDash’s monthly subscription service that waives delivery fees for users on orders of $12 or more. Normally, the service costs $9.99/month.
The deal with Chase gives certain cardholders access to the DashPass for a free or discounted rate. Chase Sapphire Reserve and Preferred members can receive a complimentary DashPass subscription for up to one year (maximum two years). Chase Freedom, Freedom Unlimited, Freedom Student, and Slate cardholders can get a complimentary pass for three months, followed by a 50 percent discount price on the DashPass fee for nine months.
Catherine Hogan, President of Chase Branded Cards, noted in a statement that Chase has seen spending on food delivery “more than double” in the last year, with cardholders ordering delivery at least once per month on average. The deal with DoorDash gives those cardholders access to more rewards for the money they spend on food.
For DoorDash, the deal is also a way to access a larger number of potential DashPass subscribers. DashPass launched in 2018 and has since grown to 1.5 million active users, with 1 in 3 DoorDash orders in top markets coming from DashPass users, according to the press release. Chase, however, is one of the largest credit card issues in the U.S., with 93 million cardholders overall — many of whom could in theory at least become DashPass holders long term.
So far, no other third-party delivery service has teamed up with a credit card company. However, if the DoorDash-Chase deal proves fruitful for both companies, we could see many more initiatives like this between other banks and delivery services. Both Uber Eats and Postmates offer monthly subscription plans that could potentially be used for similar deals, for example.
Eligible Chase cardholders have until December 31, 2021 to activate their DashPass service.