Dive Brief:
- DoorDash and Chegg, an education technology company, are partnering to offer free DashPass Student subscriptions to Chegg Study Pack subscribers, the companies announced Wednesday. The promotion will run until Aug. 1.
- Chegg has about 6.2 million subscribers in the United States, according to its most recent investor presentation. It’s unclear what fraction of those numbers are subscribers to its Study Pack as opposed to its services focusing on specific academic areas.
- The deal could expand DoorDash’s reach on campuses by attracting customers to a program designed to drive frequency by lowering service fees and eliminating delivery fees on restaurant orders above $12.
Dive Insight:
Millions of students in the U.S. subscribe to Chegg’s study services, providing DoorDash valuable scale to win more subscribers and increase loyalty among existing customers. DashPass Student is also framed as a driver of late-night delivery occasions, which could appeal to this specific consumer set alongside members-only promotions and items for sale.
“Whether fueling up for a late night study session or stocking up on dorm essentials and supplies for the semester, Chegg Study Pack subscribers can now enjoy all the benefits of a DashPass Student membership,” Rob Edell, general manager and head of consumer engagement at DoorDash, said in a statement.
DoorDash, which launched DashPass Student in April, found student deliveries surged around the start of semesters and finals weeks, according to the press release, suggesting another point of synergy between the delivery platform and Chegg.
Colleges, which tend to have concentrated populations, have emerged as a point of competition between delivery firms. Grubhub has worked to bring autonomous robot delivery to college campuses, and has partnered with hundreds of universities to integrate meal plans with Grubhub accounts. DoorDash’s offering may enable it to increase its dominance in delivery marketshare by shoring up its presence on college campuses, given how widespread Chegg usage is.
Delivery firms have sought to gain marginal advantages over each other by entering new verticals. DoorDash, in particular, has had a busy few months. The delivery giant began expanding delivery of Starbucks products nationwide in mid-January, launched a package pickup service earlier that month and launched a credit card in September.
Competitors Uber Eats and Grubhub have worked to expand their offerings, as well. Uber Eats targeted driver retention with an instant deposit debit card in October, and sought to strengthen customer trust with a new privacy feature last month. Grubhub began offering delivery from Rite Aid stores in 16 states in November. At the bottom of the market, firms like ASAP have been working on entering new markets and building up specific deals, like ASAP’s in-stadium ordering partnership with the New York Jets and New York Giants.
