Dive Brief:
- Grubhub has partnered with Bank of America to provide eligible card holders Grubhub+ for a year, according to a press release.
- Bank of America debit, credit and small business cardholders who don’t already have a Grubhub+ membership can access the trial.
- Grubhub has increased outside partnerships to expand its reach, most recently teaming with Amazon to provide Prime members with a free year of Grubhub+.
Dive Insight:
Grubhub’s partnerships allow the company to market itself to new customers without a lot of marketing spend. 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 clients, and the Amazon deal could extend Grubhub+ to over 150 million Prime members.
The Bank of America perks aren’t limited to only new Grubhub+ customers. Bank of America 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 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 Chase in 2021 to provide select cardholders access to DashPass for free for at least one year. Other cardholders would receive the first three months free, followed by a 50% discounted rate for the following nine months. That partnership has been extended to 2024. DoorDash also teamed up with Mastercard to provide World and World Elite cardholders with a three-month free trial last year. Capital One previously offered cash back and rewards for Uber Eats orders.
