Dive Brief:

• Grubhub has partnered with Lyft to provide all Lyft Pink members with a complimentary Grubhub+ membership, according to a press release.
• In addition to existing benefits like 15% off rides, Lyft Pink members can receive unlimited free delivery from about 200,000 restaurants with a $12 minimum order, donation matching through Grubhub's Donate the Change program and exclusive member Perks like free food, dollars-off and other offers from popular restaurants.
• This new partnership would provide both the food delivery provider and ridesharing service a better way to compete against Uber, which offers similar delivery and ride benefits through its Uber Pass. It will also give Grubhub additional customers that could help it grow its market share, which slipped following aggressive expansion from competitors like DoorDash.

Dive Insight:

With Grubhub growing revenue by 41% during Q2 2020 following a demand spike after the height of dining room closures, it is now pushing for more ways to reach customers. The partnership shows the company isn’t slowing down after its acquisition by Just Eat Takeaway, which could have many implications on the future of the company, especially as Just Eat Takeaway’s CEO is beginning to push for driver employment in its European markets. 

Grubhub has also been adding new services over the last 15 months, including its Ultimate program to allow restaurants to set up takeout, which it launched in January. In September 2019, the company launched its Perks loyalty program, and diners have redeemed more than $300 million in rewards so far in 2020, according to the company's press release. 

Grubhub is expanding its restaurant network as well, adding 25,000 partner restaurants from May through the end of July. Offering more restaurants will continue to attract more customers, and adding the Lyft Pink members will expand restaurants' reach to untapped customers. 

The partnership will also greatly benefit Lyft, which has faced declining ridership since spring with more riders staying at home. The addition of Grubhub+ will give Lyft Pink members an incentive to stay with the monthly service, especially since it costs $19.99 compared to Uber Pass, which costs $24.99.