Daily Insights

A Lyft From Grubhub

By: Mackenzie Baker | Oct 12, 2020

While Lyft and Uber often go head to head in the rideshare industry, the former is now preparing to take a slice of food delivery, too. 

Lyft’s subscription service Lyft Pink now includes access to food delivery through Grubhub. With Lyft Pink, users can access over 200,000 restaurants and get access to Grubhub+ and the services it owns, including Seamless. The partnership marks the first time Lyft enters the food delivery sector, and could help it expand its courier services beyond rideshares and car rentals. Users can subscribe to Lyft Pink for $19.99 a month and gain access to Grubhub and other perks, such as ride discounts, free delivery on every order, and three free 30-minute bike or scooter rides per month. With a 75% decrease in Lyft rides since the Coronavirus pandemic hit, expanding into food delivery could help the app service make up for lost sales and reconnect with homebound consumers. 

The arrival of food delivery on Lyft Pink could also help Lyft level itself against Uber, and more specifically Uber Eats. By partnering with Grubhub—the same food delivery service Uber unsuccessfully tried to acquire earlier this year—Lyft could gain an existing consumer base and geographic advantages, according to a Gartner report. By offering free delivery on every food order, Lyft could spur membership sign ups and appeal to homebound consumers in particular, as they are going out less and ordering in more. As the Coronavirus pandemic continues to interrupt consumer routines and needs, Lyft’s restructuring of its membership plan allows it to continue meeting them where they are. By entering the food delivery market amidst the ongoing pandemic, Lyft has an opportunity to increase its courier presence and boost business while ride sharing rates remain scant.

Increasing the services available on Lyft Pink could help it become a one-stop-shop service and in turn convert casual ride sharers into loyal membership holders. By working with Grubhub, Lyft can gain access to an audience of devoted customers around the country, which could help it stand out in the ever-competitive courier crowd.