Delivery Startups Diversify With Credit Cards
Instacart and DoorDash to Launch Rewards Cards
Instacart and DoorDash (DASH), two delivery companies, are gearing up to launch branded credit cards which will reward frequent users. Both companies saw strong demand for their food and meal delivery services during the pandemic. HBut as more people receive COVID-19 vaccines and begin to feel comfortable returning to in-person dining and grocery shopping, delivery companies are looking for ways to diversify. Instacart and DoorDash see credit cards as a way to reward existing customers and entice new ones.
Instacart is teaming up with JPMorgan Chase (JPM) to launch its loyalty rewards card. DoorDash has not yet chosen a partner for its branded credit card though JPMorgan, nine other big banks, and a few fintech companies have approached the delivery giant about a potential deal.
Banks Want to Diversify Too
JPMorgan Chase and other banks see these branded credit cards as a way to diversify away from travel rewards cards. Revenue from travel rewards cards dropped significantly during the pandemic. Some analysts believe that travel will take years to return to pre-pandemic levels, so banks are searching for ways to make up for this lost business.
JPMorgan has long partnered with airline operators and hotel chains on co-branded cards. Recently it has also teamed up with Amazon (AMZN) and Starbucks (SBUX) to offer credit cards. The bank’s decision to back the Instacart credit card and bid for the DoorDash card signals it is expanding its co-branded partner base.
Looking Ahead
DoorDash is expected to name the issuer for its credit card in the coming weeks. The company is currently recruiting restaurants and stores to offer promotions and discounts through the card. DoorDash also wants to provide cardholders with access to events, including curated experiences at restaurants.
The Instacart credit card is expected to debut in 2022. It will likely offer perks like 5% cash back on all Instacart purchases.
Delivery services have become a part of many consumers’ daily lives during the pandemic. Now, these companies are looking for ways to keep up their momentum as some people’s habits begin to change.
The SoFi credit card is designed to help you pay down debt. Earn 2% unlimited cash back when you redeem it* to save, invest, or pay down an eligible SoFi loan. Submit a credit card application today. Apply now.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21040901
All your finances.
All in one app.
App Store rating
