I’ve written about merchant-funded offers extensively. In the most common form readers are likely to be familiar with, a brand that wants to reach high value customers offers a free trial or credit to a premium credit card that has access to those customers.
- The brand benefits by reaching and incentivizing the customers they want
- The card issuer benefits by looking like they’re providing value to their cardmembers
Both things are true! And the specifics of the deal may vary. Sometimes the benefit costs the card issuer nothing. Something they’re even paid by the brand for the marketing. And sometimes the issuer is kicking in part of the cost.
We’ve seen American Express load up on merchant-funded offers to show substantial cash value to cardmembers, while raising annual fees. We’ve seen Chase do the same – think DoorDash and Lyft right before the pandemic, while announcing a fee increase on the Sapphire Reserve card.
These offers can be hard to make last. Eventually the brand reaches as many customers as they are likely to reach, and no longer benefits from offering continued discounts. So issuers need a funnel of new offers to replace the ones they lose.
And the offers are a competitive space, too. Chase needs Lyft and DoorDash since American Express has Uber (both rides and Eats).
When the Sapphire Reserve offer came out with Lyft, it included Lyft Pink. That included 15% off all rides; priority on airport pickups; 3 free cancels a month and no lost and found fees.
Lyft has changed its Pink program. It’s no longer as valuable, but has two tiers. Sapphire Reserve now comes with the more premium tier for two years. And it appears to, itself, be loaded with merchant-funded offers. It’s a recursive merchant-funded offer!
- Free Priority pickup upgrades
- 10% off Lux rides
- 3 free cancels per yar
- roadside assistance for your own car, free up to four times a year (Chase already has this)
- Grubhub+ for one year
- SIXT car rental upgrades
- Free unlimited 45-minute classic bike rides (after 45 minutes you pay…)
- Discounted e-bike and scooter rates plus 3 bike or scooter guest passes per year
Lyft has a subscription plan that’s barely about on-demand rides – it’s bundling roadside assistance for when you aren’t riding with Lyft; Grubhub+ (which broadens Chase’s meal delivery partnership by extension); SIXT; and e-bikes and scooters.
I don’t especially see value in Lyft Pink All Access, the way I did in a simple 15% discount on Lyft rides. However there is still a big benefit in the Chase-Lyft partnership for Sapphire Reserve cardmembers: 10x points-earning with Lyft through March 2025. With the demise of Uber’s loyalty program, this makes me want to ride with Lyft instead.
Lyft bikes are a great way to get in shape. Just saying Gary. I hope you are making progress toward your weight loss goal.
I agree Lyft Pink is of nominal value (already have Grubhub+ through a free offer from Amazon Prime so that doesn’t do anything for me). However I immediately signed up to get the “free” 2 year membership (and put in a reminder to cancel after that). No cost and something I “may” benefit from so no downside but I don’t add any value to it when looking at total cost/benefits of my CSR card
For those of us in places like NYC, it’s a massive benefit to have free Citibikes as it’s completely free transportation if you use classic bikes, and e-bikes are usually less than the cost of the subway for typical commutes around Manhattan. I think this is solid, just wish they did it BEFORE I bought it for cash. I already cancelled the auto-renewal and will apply this next summer when my current subscription runs out. As a quick sample, I’ve taken 69 rides sides I bought it in august, that’s a $275.31 saved on the $3.99 unlock fee alone, so I’m already $76.31 ahead ($275.31-$199 fee I paid). Even with a lul in use during winter, I’ll get that back at least 2 fold even paid in cash. It’s a no-brainer to pay in NYC, even better with this free offer.
@ss_flyer, the Chase Lyft partnership website FAQ says you are supposed to get a prorated refund once you activate the benefit if you already have a paid Pink membership.
It’s not recursive, it’s transitive. A>B>C.
Recursive would be A>B>A, like when you match Hyatt to M-Life and then M-Life to Hyatt, extending your status for years on end.