The news: JPMorgan Chase and on-demand food delivery provider DoorDash will launch a co-brand credit card on Mastercard’s network, per a press release. While neither company disclosed perks for the DoorDash Rewards Mastercard, the card will feature Mastercard World Elite benefits like identity theft and fraud protections.
Why it’s worth watching: Food delivery’s popularity will set a strong foundation for the DoorDash co-brand card.
- DoorDash’s US restaurant sales are expected to grow 17% year over year in 2022 and reach $37.34 billion, according to Insider Intelligence forecasts. While that’s slower than last year (+60.4% YoY), we expect the firm’s growth will accelerate next year (+18.5% YoY).
- Consumers still value the convenience of food delivery even as inflation squeezes spending. Thirty-one percent of US respondents cited food delivery as the leading omnichannel activity they participate in, per a 2022 McKinsey report.
Food delivery’s endurance might make loyal customers more inclined to try out products like the DoorDash card, which can give them better rewards.
JPMorgan’s opportunity: The dining-focused co-brand card can bolster Chase card spending and build out its co-brand portfolio—which Co-CEO of consumer and community banking Marianne Lake called a long-term growth driver.
JPMorgan recently launched the Instacart co-brand, and working with DoorDash will reinforce its push into the food sector. The new card will likely deliver on the types of perks consumers seek and value: 38% of US consumers said restaurants provide the most value for earning cash-back credit card rewards, per Insider Intelligence’s US Cash-Back Credit Card Emerging Features Benchmark 2022. It will also reinforce the shift to digital co-brands, which are set to become more popular as brands adapt their offerings to appeal to digital-native consumers. Digital co-brands also align with ecommerce growth.
DoorDash’s benefit: The card will help the company increase customer loyalty and sales volume through brand-specific perks and other shopping rewards. This will help keep DoorDash top-of-mind for customers so it can stay ahead of rivals like Uber Eats and GrubHub, which don’t offer credit cards.