Dive Brief:
- Delivery company Grubhub has partnered with Bank of America to provide eligible card holders free access to its Grubhub+ loyalty program for a year, according to a press release.
- Bank of America debit, credit and small business cardholders who don’t already have a Grubhub+ membership can access the trial.
- Grubhub has increased outside partnerships to expand its reach, most recently teaming with digital marketplace giant Amazon to provide its Prime members with a free year of Grubhub+.
Dive Insight:
Grubhub’s partnerships allow the company to market itself to new customers without a lot of marketing expense. Third-party subscription members also typically spend more each month, and have higher frequency than non-members.
Bank of America will give Grubhub access to 67 million consumer and small business card clients, and the Amazon deal could extend Grubhub+ to over 150 million Prime members.
The new Bank of America perks aren’t limited to customers who aren’t yet Grubhub+ members. The bank’s cardholders who are already Grubhub+ members can get an offer of $5 off their next three orders of $15 or more, which could help increase frequency of use by existing members. Grubhub+ currently costs $9.99 per month and provides members with $0 delivery fees on orders of $12 or more.
Other third-party delivery firms have teamed up with credit card companies to promote their services. DoorDash partnered with JPMorgan Chase in 2021 to provide select cardholders access to DashPass for free for at least one year. Other cardholders received the first three months free, followed by a 50% discounted rate for the following nine months. That partnership has been extended to 2024.
Delivery rival DoorDash teamed up with Mastercard to provide World and World Elite cardholders with a three-month free trial last year. The bank card issuer Capital One previously offered cash back and rewards for Uber Eats orders.
