Ride-sharing app Lyft is partnering with Starbucks (SBUX - Free Report) to do something no other U.S. ride-hailing company has done: It will sell gift cards. The company announced Tuesday that it will begin selling $20 gift cards in Starbucks locations this week.
To entice riders and Starbucks customers to by the cards, the companies are offering customers a $5 Starbucks gift card with the purchase of a Lyft card, and 125 free stars, or the equivalent of a free coffee, to those customers who sign up for Lyft and link their Starbucks account in the app. Riders can also earn five stars towards free food and coffee at Starbucks if they hitch a ride between 5 a.m. and 10 a.m. Monday through Friday for the next few months, as the offer is only for a limited time.
“The partnership, we think, can help us not only reach new people, which is a huge goal of ours, but also get more people to take Lyft more frequently,” said Oliver Hsiang, Lyft’s VP of partnerships. He also added that the goal of the partnership is to “cross-pollinate” Lyft riders and Starbucks customers to drive foot traffic for both companies.
“There are lots and lots of Starbucks stores in the cities that Lyft operates, and we know that people are taking Lyft rides to and from these locations. In fact, Starbucks was the number one most-visited coffee shop for us last year,” Hsiang also said.
The promotion comes at a time when Lyft continues to try and boost its growth and gain market share from its faster-growing rival in Uber. Lyft has been enjoying solid success lately though, telling investors that July was a record month for several metrics, including the number of new passengers and drivers, and active passengers and drivers.
This most recent partnership isn’t the first between the two companies, as last year Lyft provided ride services to Starbucks baristas and offered perks to Lyft drivers and Starbucks rewards members.
In regards to why Lyft is offering the gift cards, Hsiang stated, “The gift cards allows us to get in front of a lot of people who may not be familiar with Lyft, or they can get in front of people who want to gift Lyft to other people,” adding, “What we have learned is that there are lots of people who still prefer to transact through the physical card.”
Bottom Line
Lyft continues to try and expand to compete with its much larger, and faster-growing rival in Uber, and has looked to partnerships like this one with Starbucks, or its deal with General Motors (GM - Free Report) to do so. It is still too early to tell how much these partnerships are or will help the company, but based off of its recent comments on an extremely successful July, Lyft seems to be headed in the right direction.
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Ride-sharing app Lyft is partnering with Starbucks (SBUX - Free Report) to do something no other U.S. ride-hailing company has done: It will sell gift cards. The company announced Tuesday that it will begin selling $20 gift cards in Starbucks locations this week.
To entice riders and Starbucks customers to by the cards, the companies are offering customers a $5 Starbucks gift card with the purchase of a Lyft card, and 125 free stars, or the equivalent of a free coffee, to those customers who sign up for Lyft and link their Starbucks account in the app. Riders can also earn five stars towards free food and coffee at Starbucks if they hitch a ride between 5 a.m. and 10 a.m. Monday through Friday for the next few months, as the offer is only for a limited time.
“The partnership, we think, can help us not only reach new people, which is a huge goal of ours, but also get more people to take Lyft more frequently,” said Oliver Hsiang, Lyft’s VP of partnerships. He also added that the goal of the partnership is to “cross-pollinate” Lyft riders and Starbucks customers to drive foot traffic for both companies.
“There are lots and lots of Starbucks stores in the cities that Lyft operates, and we know that people are taking Lyft rides to and from these locations. In fact, Starbucks was the number one most-visited coffee shop for us last year,” Hsiang also said.
The promotion comes at a time when Lyft continues to try and boost its growth and gain market share from its faster-growing rival in Uber. Lyft has been enjoying solid success lately though, telling investors that July was a record month for several metrics, including the number of new passengers and drivers, and active passengers and drivers.
This most recent partnership isn’t the first between the two companies, as last year Lyft provided ride services to Starbucks baristas and offered perks to Lyft drivers and Starbucks rewards members.
In regards to why Lyft is offering the gift cards, Hsiang stated, “The gift cards allows us to get in front of a lot of people who may not be familiar with Lyft, or they can get in front of people who want to gift Lyft to other people,” adding, “What we have learned is that there are lots of people who still prefer to transact through the physical card.”
Bottom Line
Lyft continues to try and expand to compete with its much larger, and faster-growing rival in Uber, and has looked to partnerships like this one with Starbucks, or its deal with General Motors (GM - Free Report) to do so. It is still too early to tell how much these partnerships are or will help the company, but based off of its recent comments on an extremely successful July, Lyft seems to be headed in the right direction.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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