Technology

DoorDash teams up with Lyft to give some users cheaper rides

Members of the third-party delivery company’s DashPass program will get discounts on the ride-sharing app. It's an effort to drive more consumers to DashPass and compete with rival Uber.
DoorDash
DoorDash continues to see record demand. | Photo: Shutterstock

DoorDash is dipping a toe into the ride-sharing business. 

The third-party delivery company is partnering with Lyft to give members of its DashPass subscription program some perks with the ride-sharing app. Users will get 5% off standard Lyft rides, 10% off scheduled airport rides and two free priority pickup upgrades a month. 

Lyft users who sign up for DashPass, meanwhile, will get their first three months free. DashPass waives delivery fees on eligible orders and normally costs $9.99 a month. Customers can link their DoorDash and Lyft accounts to unlock the deals. 

The partnership is DoorDash’s latest effort to drive customers to DashPass. The company had more than 18 million DashPass users in the third quarter, an all-time high. It covets those subscribers because they tend to order more often. 

In August, it began giving members free access to HBO’s Max streaming service. Adding Lyft benefits to that package will save DashPass members an average of $500 a year—“the greatest average savings of any membership program in the U.S. offering both delivery and rideshare,” DoorDash said in a press release.

The comment appeared to be a clear shot at rival Uber, which offers both ride sharing and food delivery perks via its Uber One subscription. Teaming up with Lyft could help DoorDash swipe some business from Uber.

The news came amid continued strong demand for DoorDash and delivery in general. In the third quarter, the company once again set a record for total orders and order volume. Orders rose 18% year over year, and marketplace gross order volume was up 20%.

Notably, the company also reported its first profit as a publicly traded company. Net income for the period was $162 million.

Uber, which reported earnings Thursday morning, saw similar growth in its delivery business. Uber Eats’ gross bookings rose 16% year over year as customers placed more orders.

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