Lyft taps Grubhub for food delivery program

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Grubhub

The newest gambit by ridesharing brand Lyft brings a new meaning to the phrase: “Do you want fries with that?”

 

News reports this morning show that Lyft is basically “adding on food” to its B2C transportation service model, partnering with the Grubhub delivery from to offer enhanced membership packages for those who get the munchies and don’t want to hop behind the wheel.

 

Lyft’s choice to offer free delivery services to its elite group of Lyft Pink members makes sense in that we know coronavirus has decimated ridesharing, while creating peak demand for food delivery.

 

The Lyft Pink program, which costs $19.95 a month, also comes with some other extras.

 

However, at least three of these perks might be a little hard to square with service that Lyft provides to its regular patrons.

 

In the list of attractions to a Lyft Pink package, the company includes:

  •  Relaxed cancellation policy
  •  Waived lost and found fees
  •  Priority airport pickups

Here’s where regular users might get a little miffed. Non-Pink Lyfters getting slow airport service or having to pay fees to get back their personal items might ask whether the company is doing its utmost in customer service for everyone, or just a small elect group who pay more. The same holds true for relaxed cancellations – it might be hard, then, for Lyft to justify stricter cancellation rules for some plebs.

 

In any case, Lyft says its new program is not a direct challenge to Uber and its Uber Eats brand, but the Lyft/Grubhub alliance will make the rival more competitive.

 

“Lyft’s VP of marketing, Heather Freeland, said in an interview that the partnership was ‘not about going head to head’ with Uber, but simply intended to offer more benefits to Lyft Pink members who had asked for food delivery perks in a survey the company conducted,” write Tina Bellon and Hilary Russ at Reuters.

 

Uber, for its part, has its own problems, including its labor snafu and volatility in its international holdings.

 

Keep an eye out for changes that impact your portfolio.

 

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