Credit cards are cool, but lanyards are better (Source: Smith Collection / Getty Images)
There’s an extremely high possibility that you’ve used one of these 2 apps in the past year: DoorDash (food delivery), Instacart (grocery delivery).
Both services became essential for many during the pandemic and their respective valuations prove this out:
- DoorDash went public in December and is now worth $45B
- Instacart raised a new round of funding at $39B
Now, both companies plan on launching their own credit cards
Why? As noted by The Wall Street Journal, branded credit cards are typically launched to help retain users and reward loyal customers.
Instacart is partnering with JPMorgan on a card to be released next year that may include 5% cash back. Meanwhile, DoorDash is deciding among 10+ banks to partner with on its own card.
Banks typically partner with hotel and travel companies…
… but those 2 industries have been hurting for obvious reasons.
Per the Journal, JPMorgan is “choosy” about its credit card partners. Among non-travel industries, the bank has only linked up with the biggest names (e.g., Amazon, Starbucks).
With Instacart and DoorDash convincing banks to give them the goods, the sentiment seems to be that we’ll continue to use the services long after the pandemic is over.