Lyft users who subscribe to the company's $19.99 per month loyalty program, Lyft Pink, will now get the added benefit of free Grubhub deliveries, Lyft announced on Tuesday (Oct. 6) on its blog.
“Lyft Pink has always been oriented on delivering great value for our members. When we launched, that value was rooted in our transportation network,” Heather Freeland, vice president for marketing at Lyft, stated in the post. "We heard from our riders that food delivery was a benefit they wanted, so we went to work to make it happen. At a time when Americans are relying on food delivery more than ever, we're thrilled to team up with Grubhub to bring even more value to Lyft Pink."
The program involves about 200,000 U.S. restaurants and requires minimum orders of $12.
Restaurants are increasingly working with delivery services to create business during the COVID-19 pandemic, even though some restaurateurs have publicly complained that the 40 percent fees some delivery services assess are onerous.
In some cases, restaurants are not merely trying to add new customers, but also to maintain existing customers through the use of subscription services.
A classic and widely-known subscription service is Netflix, but subscriptions in a number of other areas have been growing. A recent PYMNTS report, produced in collaboration with Recurly, found that the average U.S. household had 2.9 subscriptions in July, up from 2.6 in February. Education and training were among the most popular categories. The report also found that younger customers – those who comprise Generation Z – are unlikely to automatically renew subscriptions.
The grocery delivery business has been growing alongside deliveries for the restaurant business, sparking fierce competition among providers in that sector as well.
Lyft launched Lyft Pink about a year ago. In addition to the newly announced free Grubhub delivery, benefits of the program include 15 percent discounts on Lyft rides, three free cancellations per month under certain conditions, three free 30-minute bicycle or scooter trips, and priority status for airport pickups during busy periods.