DoorDash launches co-branded card with JPMorgan

This morning, DoorDash and JPMorgan announced the launch of a co-branded card issued by Mastercard. The card will let users earn benefits both on and off the DoorDash app.

Why should we care?
The tie-up is a strategic move for all parties involved, but especially for DoorDash and JPMorgan. For DoorDash, the card is an opportunity to solidify its user base—which accounts for 59% of the food-delivery space—while also starting to eat into Instacart’s domain. Last week, DoorDash announced a partnership with Sprouts, the organic grocery store chain; Instacart already has a co-branded card with JPMorgan, so DoorDash’s adding a similar financial product to its suite of offerings levels the playing field between the two delivery platforms. For JPMorgan, meanwhile, the new card lets it further establish its position as the largest issuer of co-branded cards in the US. The card also offers JPMorgan access to a new tranche of potential customers who, notably, seem resilient in the face of inflation. Last month, DoorDash announced that customers ordered off its platform 426 million times in Q2, which marks a 23% increase from Q2 2021—all this despite a spike in prices. JPMorgan may gear up to use the co-branded card as a new channel for cross-selling opportunities, making its own consumer business more resilient in the fact of an upcoming downturn.