Dive Brief:
- DoorDash has partnered with Chase and Mastercard to roll out the first-ever DoorDash credit card, the companies announced Tuesday.
- Cardholders of the DoorDash Rewards Mastercard will have access to benefits and earn rewards on purchases both on and off the aggregator’s platform.
- DoorDash has worked with Chase since 2020, offering complimentary DashPass membership perks to Sapphire, Freedom and Slate cardmembers. It has worked with Mastercard since 2021.
Dive Insight:
The DoorDash credit card will provide a new way to attract and retain customers in the highly competitive food delivery segment. Co-branded cards can also encourage loyalty from customers, especially since consumers can receive rewards from retailers they shop with frequently, according to Insider Intelligence. Many retailers have credited co-branded cards as a significant contributor to customer frequency.
Other food delivery platforms have been partaking in similar partnerships. Grubhub is working with Bank of America to provide eligible cardholders a free year of Grubhub+. It also began offering a corporate pay card with Visa earlier this year to allow employees with corporate accounts to order from partner restaurants.
DoorDash’s competitive edge is in the act of offering a credit card rather than just providing benefits to existing cardholders. The partnership with Chase could provide even more access to potential customers, especially since Chase serves over 66 million U.S. households, according to the press release. The new card is a World Elite Mastercard, which also includes 24/7 complimentary concierge services and access to Mastercard Priceless Experiences, according to the press release.
