Technology

Grubhub extends delivery perks to Bank of America customers

Cardholders can now get one year of free access to the Grubhub+ membership program. It’s Grubhub’s latest effort to grow its user base.
Grubhub food
Grubhub+ waives delivery fees on orders over $12. / Photograph courtesy of Grubhub

If you have a Bank of America card, you might be able to get free food delivery for a year.

Grubhub is partnering with the country’s second-largest bank to give cardholders free access to Grubhub+. The subscription program waives delivery fees on orders over $12 and normally costs $9.99 a month. 

It’s the latest effort by Grubhub to drive new customers to Grubhub+. In July, the delivery company unveiled a similar offer for Amazon Prime’s roughly 200 million members.

The deal with Bank of America could expose millions more people to Grubhub+: The giant bank has 67 million cardholders, a Grubhub representative said.

"This is truly a win-win, with Bank of America now rewarding cardholders with deals and perks from restaurants they will love, and Grubhub tapping into Bank of America's loyal and vast customer base to drive even more orders to restaurant owners and drivers," said Launika Raykar, VP of loyalty at Grubhub, in a statement.

Chicago-based Grubhub has been struggling to drive traffic this year. In the first half of 2022, total orders fell 10%, and its sales were flat compared to the same period in 2021.

The Amazon and Bank of America agreements present a big opportunity to turn that around.

"It would surprise me a lot if you won't see anything over the course of the next year in terms of a better trajectory for this business," said Jitse Groen, CEO of Grubhub parent company Just Eat Takeaway, during an earnings call earlier this month. "While [the Amazon Prime deal] doesn't address all the issues that we face in the U.S., it does address a growth and market share issue."

Grubhub has been losing ground to DoorDash and Uber Eats, which have their own successful membership programs. DoorDash said Q2 was one of its best quarters ever for new DashPass signups. And Uber last week ended a long-running free rewards program to steer customers toward its Uber One subscription.

The companies covet subscribers because they tend to be more loyal and order more frequently. And for customers, the programs can lower the cost of food delivery, which can be expensive. 

"Giving our clients Grubhub+ free for a year is just one of the ways we're helping them navigate their finances and make every dollar go farther," said Chris Curtin, social media and rewards executive at Bank of America, in a statement. 

The offer applies to Bank of America credit, debit and small business cardholders that don’t already have a Grubhub+ subscription. They can sign up anytime before April 20, 2023. After their free 12 months are up, users will be automatically converted to a paid plan. They can cancel anytime.

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