DoorDash, a delivery service, announced a partnership with Lyft to provide ride-sharing benefits to its members. This collaboration came alongside DoorDash’s release of better-than-expected third-quarter results. The San Francisco-based company reported a 25% increase in revenue for the July-September period, reaching $2.7 billion, which exceeded Wall Street’s forecast of $2.65 billion according to analysts polled by FactSet.
DashPass members will receive discounted rides via Lyft, and in return, Lyft riders will be offered a free trial of DashPass. The DashPass subscription, costing $9.99 per month or $96 per year, entitles members to free deliveries on most orders.
This strategic alliance positions DoorDash as a stronger competitor against Uber, which offers free Uber Eats delivery and discounted Uber rides to its Uber One members. The Uber One program is priced at $9.
DoorDash has partnered with Lyft to give its members ride-sharing benefits. The partnership is part of efforts by both companies to entice customers through their loyalty programs. Lyft said 20% of its rides last year were connected to its partners, including Delta Air Lines and Hilton. DoorDash recently also partnered with Max, Warner Bros. Discovery’s entertainment streaming service. In the third quarter, DoorDash reported total orders rose 18% to 643 million, exceeding analysts’ expectations of 640 million. The company reported net income of $162 million, compared to a loss of $73 million a year ago. The cost for DoorDash’s membership is $99 per month or $96 per year.
