DoorDash will let customers gift DashPass subscriptions

Dive Brief:

  • DoorDash is selling three-month, six-month and 12-month memberships of its DashPass subscription as a holiday gift option for consumers, the company announced Monday.
  • The company is running a DashPass subscription sale from Nov. 25 to Dec. 16. Buyers can gift themselves or others a DashPass membership for a year at $59 compared to the full price of $96.
  • The promotion, aimed at building membership in the DashPass program, is also framed as a way to boost consumer choice and alleviate holiday stress.

Dive Insight:

A holiday discount aligns with the company’s strategy for DashPass. On DoorDash’s latest earnings call, Prabir Ardakar, DoorDash’s chief financial officer, said the company was trying to keep subscription costs for DashPass low to encourage adoption. With the sale, the monthly price for an annual subscription is just under $5 per month, compared to the normal monthly subscription fee of $9.99.

DashPass members tend to have greater retention and order at rates above non-members, and may be more resistant to macro-economic headwinds, according to DoorDash’s latest earnings call. The program, which has existed since 2018, gives customers free delivery on qualifying orders for a subscription fee. DashPass also reduces service fees on eligible orders and offers customers 5% cashback on pickup orders, according to the press release. 

Rival Uber Eats is taking advantage of consumer holiday spending, as well. Last week, the platform announced a holiday gifting feature, which enables customers to gift each other meals. Uber phased out its free rewards program earlier this year in favor of a paid program that offers discounts on rideshares and delivery orders. 

DoorDash has had a busy few weeks, testing restaurant reservations in some markets in late October, adding a new suite of driver safety features last week and partnering with WeWork as its exclusive delivery partner for events on Friday


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