Instacart Inc., an online grocery delivery and pickup company, and DoorDash, a food ordering and delivery company are preparing to introduce their credit cards, according to a report published by The Wall Street Journal.
The two companies in the United States have seen an increase in the volume of orders in recent months. Customers switch to their smartphones to have essential goods shipped to their homes to avoid contracting COVID-19.
Based on The Wall Street Journal report, JPMorgan Chase & Co will provide Instacart’s card and is also considering partnering with DoorDash, which has attracted deals from major banks. The company’s decision to work with delivery firms may indicate a willingness to try new things.
JPMorgan Chase & Co. has a record of being selective on the companies it partners with. The company particularly works with airlines and high-end hotels. Starbucks Corporation and Amazon Inc. have both received credit card systems from the bank.
Banks regard new collaborations to diversify their business ventures. As tourism has ceased, the travel rewards that banks had heavily featured before the pandemic have gone out of advantage. Thus, expanding to other options can be beneficial.
As per sources, the Instacart credit card will not be available until next year. Besides, cardholders will presumably get 5% cashback on their payments.
Based on a document checked by the newspaper, DoorDash is now seeking affiliate restaurants and retailers to deliver rewards, exclusive deals, and discounts to cardholders.
JPMorgan and DoorDash representatives declined the request for a comment on the news. Dani Dudeck, Instacart’s representative, said the company is not commenting on “industry speculation.”
In the past year, since governments worldwide directed people to stay at home to combat the coronavirus, consumers heavily relied on food and grocery apps. Many people want to continue using this method even the restrictions loosen.
