Delivery platform DoorDash announced on Wednesday that it has formed a partnership with Lyft, aiming to offer ride-sharing perks to its members. This collaboration follows DoorDash’s release of third-quarter results which surpassed expectations. The San Francisco-based company reported a 25% revenue increase for the July to September quarter, reaching $2.7 billion, exceeding Wall Street’s predictions of $2.65 billion according to analysts surveyed by FactSet.
As part of this new partnership, DashPass members will receive discounts on rides with Lyft, while Lyft users can access a complimentary trial of the DashPass service. A DashPass subscription is priced at $9.99 per month or $96 annually, allowing members to enjoy free deliveries on a majority of orders.
This strategic alliance strengthens DoorDash’s competitive edge against Uber, which provides complimentary Uber Eats delivery and reduced fares on rides for its Uber One members. Similar to DoorDash’s offering, Uber One also comes at a cost of $9.99 monthly or $96 yearly.
In a bid to enhance customer engagement, both Lyft and DoorDash are expanding their partnerships within loyalty programs. Lyft reported that 20% of its rides last year were linked to its various partners, which include well-known brands like Delta Air Lines and Hilton. Recently, DoorDash has also teamed up with Max, the streaming service launched by Warner Bros. Discovery.
DoorDash further reported that it experienced an 18% increase in total orders during the third quarter, totaling 643 million, which was slightly above the anticipated 640 million orders by analysts. The company also reported a net income of $162 million, a significant improvement compared to a loss of $73 million from the same period the previous year.