Chase and DoorDash Announce Expansion of Partnership to Include New Grocery Benefits for Chase Sapphire and Other Consumer Branded Cards

Rhea-AI Summary

Chase and DoorDash have expanded their partnership, offering new grocery benefits for Chase Sapphire and other consumer branded cards. The deal extends DashPass membership for eligible Chase cardmembers through 2027 and introduces recurring grocery and convenience benefits. Key features include:

- Sapphire Reserve cardmembers receive two $10 off promos monthly for grocery, convenience, or non-restaurant orders.
- Sapphire Preferred cardmembers get one $10 off promo monthly for similar orders.
- Freedom and Slate cardmembers receive one $10 off promo quarterly for such orders.
- DashPass membership extended or newly offered to various Chase cardholders.

This partnership aims to provide Chase customers with enhanced convenience and savings on DoorDash's platform, which includes over 150,000 grocery, convenience, and non-restaurant stores.

Positive

• Extension of DashPass membership for eligible Chase cardmembers through 2027
• Introduction of new recurring grocery and convenience benefits for Chase cardholders
• Expansion of partnership to include over 150,000 grocery, convenience, and non-restaurant stores on DoorDash
• Potential for increased user engagement and transactions on DoorDash platform

Negative

• None.

Insights

Financial Analyst

The expansion of Chase's partnership with DoorDash represents a strategic move in the competitive credit card market. This deal has several key implications:

• Extended customer retention: By offering DashPass memberships through 2027, Chase is locking in a long-term value proposition for its cardholders, potentially reducing churn rates.
• Expanded benefits: The introduction of grocery and convenience store benefits broadens the appeal of Chase cards, particularly in the face of changing consumer habits post-pandemic.
• Competitive positioning: This move helps Chase differentiate its offerings in a crowded market, potentially attracting new customers and retaining existing ones.

From a financial perspective, while specific terms aren't disclosed, such partnerships typically involve revenue-sharing agreements. For Chase, this could mean increased card usage and, consequently, higher interchange fees. For DoorDash, it provides a steady stream of premium subscribers and potential for increased order volume.

The deal's long-term nature (through 2027) suggests both companies see significant strategic value in the partnership. However, it's worth noting that locking into such a long-term agreement could limit flexibility if market conditions or consumer preferences shift dramatically.

Overall, this partnership expansion appears to be a calculated move to enhance Chase's value proposition in the credit card market while providing DoorDash with a stable base of premium users. The true impact on both companies' bottom lines will depend on user adoption rates and changes in consumer behavior over the coming years.

Market Research Analyst

This partnership expansion between Chase and DoorDash is a reflection of evolving consumer trends and market dynamics:

• Shift in consumer behavior: The inclusion of grocery and convenience store benefits indicates a recognition of the growing demand for online grocery and essentials delivery, accelerated by the pandemic.
• Competitive landscape: With many credit card issuers offering similar dining and travel perks, this move into grocery and convenience differentiates Chase's offerings.
• Target demographic: The benefits are tailored to appeal to urban, tech-savvy consumers who value convenience and are comfortable with app-based services.

The extended timeframe of the partnership (through 2027) suggests both companies are betting on the longevity of these trends. However, this also poses some risks:

• Market saturation: As more players enter the food and grocery delivery space, maintaining customer loyalty could become challenging.
• Economic factors: An economic downturn could impact consumers' willingness to pay for convenience services, potentially affecting the value of these benefits.

For DoorDash, this partnership provides a steady stream of premium users, which could be important in a highly competitive delivery market. It also helps them expand beyond restaurant delivery, diversifying their revenue streams.

For Chase, the deal could help attract and retain younger, digitally-native consumers who might otherwise be drawn to fintech alternatives. The success of this strategy will largely depend on how well these benefits resonate with target consumers and how effectively both companies can adapt to changing market conditions over the next few years.

DashPass membership for Chase Sapphire and other eligible Chase cardmembers extended through the end of 2027 with the introduction of new recurring grocery and convenience benefits

WILMINGTON, Del. & SAN FRANCISCO--(BUSINESS WIRE)-- Chase (NYSE: JPM), the largest credit card issuer in the U.S., announced an extension and expansion of its partnership with DoorDash (NASDAQ: DASH), the premier local commerce platform. Starting today, Chase Sapphire and other eligible Chase cardmembers will receive recurring benefits on orders from over 150,000 grocery, convenience, and non-restaurant stores on DoorDash. This partnership also provides access to a complimentary DashPass membership for existing Chase cardmembers and consumers who sign up now through December 31, 2027. DashPass is DoorDash’s membership program that offers exclusive deals, members-only benefits, and unlimited $0 delivery fees and reduced service fees on eligible orders from thousands of restaurants, grocery, convenience, and non-restaurant stores. Details across Chase include:

Sapphire Reserve®

• Cardmembers with active, free DashPass memberships will continue to receive the benefit through December 31, 2027.
  • New and existing Sapphire Reserve cardmembers who have not yet activated the DashPass benefit can enroll to receive a complimentary DashPass benefit through December 31, 2027, or a minimum of 12 months, dependent upon the activation date.
• New: Cardmembers with an activated Sapphire Reserve DashPass membership now receive two promos of up to $10 off each calendar month at checkout on grocery, convenience, or other non-restaurant orders on DoorDash.
• Sapphire Reserve cardmembers will continue to receive the existing $5 monthly DoorDash in-app credit through January 31, 2025. Beginning February 1, 2025, cardmembers will receive a new monthly benefit for $5 off restaurant orders on DoorDash.

Sapphire Preferred®

• Cardmembers with active, free DashPass memberships will continue to receive the benefit through December 31, 2027.
  • New and existing Sapphire Preferred cardmembers who have not yet activated the DashPass benefit can enroll to receive a complimentary DashPass benefit through December 31, 2027, or a minimum of 12 months, dependent upon the activation date.
• New: Cardmembers with an activated Sapphire Preferred DashPass membership now receive one promo of up to $10 off each calendar month at checkout on one grocery, convenience, or other non-restaurant order on DoorDash.

Freedom® and Slate®

• Cardmembers who have not used the Chase DashPass benefit have until January 31, 2025, to enroll in the current benefit – three months of free membership followed by nine months of discounted DashPass.*
• New: Starting February 1, 2025, new enrollees will receive six free months of DashPass.*
• New: Cardmembers who have activated a Freedom or Slate DashPass membership now receive one promo of up to $10 off each quarter at checkout on one grocery, convenience, or other non-restaurant order on DoorDash.

“We’re excited to expand our longstanding partnership with Chase consumer branded cards to become its exclusive grocery and restaurant delivery platform partner,” said Usman Cheema, Global Head of Business Development for DoorDash. “In addition to continuing to offer DashPass as a benefit for eligible cardmembers, we’re proud to unlock more DoorDash savings for Chase cardmembers to order from a wide variety of categories available on DoorDash including grocery and convenience stores. We look forward to continuing our partnership with Chase to connect consumers to all their favorite local stores in a convenient, affordable way.”

“Introducing these new benefits in addition to our ongoing offer of DashPass showcases our commitment in bringing the utmost convenience that we can to our cardmembers’ lives,” said Dana Pouwels, Head of Strategic Card Partnerships at Chase. “We’re pleased to continue our DoorDash partnership and provide our Chase Sapphire and other cardmembers with enhanced offers on grocery and convenience.”

For $9.99/month or $96/year, DashPass members save an average of $5 on every eligible order and since launching in 2018, members have saved over $10 billion globally​​. DashPass is the largest membership program in third-party local commerce and the most affordable way to order on DoorDash.

To learn more or to activate your complimentary DashPass membership, visit the DashPass and Chase sign up page here or download the DoorDash app to add your eligible Chase credit card.

About Chase

Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $4.1 trillion and operations worldwide. Chase serves more than 82 million consumers and 6.4 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,800 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone. For more information, go to chase.com.

About DoorDash

DoorDash (NASDAQ: DASH) is a technology company that connects consumers with their favorite local businesses in more than 30 countries across the globe. Founded in 2013, DoorDash builds products and services to help businesses innovate, grow, and reach more customers. DoorDash is your door to more: the local commerce platform dedicated to enabling merchants to thrive in the convenience economy, giving consumers access to more of their communities, and providing work that empowers.

Terms & Conditions

*After the free benefit period ends, membership automatically renews as a paid monthly plan. Terms apply.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801876361/en/

Heather Caufield

Heather.Caufield@chase.com

Mattie Magdovitz

mattie@doordash.com

Source: DoorDash

FAQ

What new benefits does the Chase and DoorDash partnership offer for Sapphire Reserve cardmembers?

Sapphire Reserve cardmembers now receive two promos of up to $10 off each calendar month on grocery, convenience, or other non-restaurant orders on DoorDash, in addition to their existing benefits.

How long is the DashPass membership extended for Chase Sapphire cardholders?

The DashPass membership for Chase Sapphire cardholders is extended through December 31, 2027, or a minimum of 12 months, depending on the activation date.

What benefits do Freedom and Slate cardmembers receive in the expanded DoorDash partnership?

Freedom and Slate cardmembers receive one promo of up to $10 off each quarter on one grocery, convenience, or other non-restaurant order on DoorDash, plus six free months of DashPass for new enrollees starting February 1, 2025.

How many stores are included in the expanded Chase and DoorDash partnership?

The expanded partnership includes over 150,000 grocery, convenience, and non-restaurant stores on the DoorDash platform.