DoorDash partners with Lyft to give members ride-sharing benefits

DEE-ANN DURBIN

October 30, 2024

Delivery service DoorDash said Wednesday that it's partnering with Lyft to bring ride-sharing benefits to its members.

The announcement came as DoorDash released better-than-expected results for its third quarter. The San Francisco company said its revenue rose 25% in the July-September period to $2.7 billion. The figure topped Wall Street's forecast of $2.65 billion, according to analysts polled by FactSet.

DoorDash said its DashPass members will get discounted rides through Lyft, while Lyft riders will a get a free DashPass trial. DashPass members pay $9.99 per month or $96 per year for free deliveries on most orders.

The combination makes DoorDash a more potent competitor to Uber, which offers free Uber Eats delivery and discounted Uber rides to its Uber One members. Uber's program also costs $9.99 per month or $96 per year.

Both Lyft and DoorDash have been adding partners to their loyalty programs in order to entice customers. Lyft said 20% of its rides last year were connected to its partners, including Delta Air Lines and Hilton. DoorDash recently partnered with Max, Warner Bros. Discovery's entertainment streaming service.

DoorDash said its total orders rose 18% in the third quarter to 643 million, more than the 640 million that analysts expected. The company reported net income of $162 million, compared to a loss of $73 million a year ago.

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