The delivery company is working with outside companies to expand its reach by offering limited free membership in its GrubHub+ loyalty program
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.
By Julie Littman on Aug 19, 2022
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