Delta to Tie Loyalty Program to Uber, Ending 8-Year Lyft Partnership



still 5

Delta will link its SkyMiles program to Uber, both companies announced at the CES conference in Las Vegas on Tuesday. 

Starting this spring, Uber will become Delta’s exclusive rideshare and delivery partner, ending the carrier’s eight-year partnership with rival Lyft. The Delta-Lyft partnership will expire April 7. 

SkyMiles members will be able earn one mile per dollar spent on UberX rides to the airport, two miles per dollar on premium rides, and three miles per dollar on Uber Reserve rides. Customers can also earn a dollar per mile on orders over $40 from restaurants and grocery orders. 

Uber had 161 million active riders as of September 2024; Lyft has 24.4 million. 

While Delta CEO Ed Bastian did not reveal why the carrier decided to switch partnerships at the conference, the company said in a release that linking with Uber “underscores the home to destination connectivity Delta plans to bring across its experience through integrations with beloved everyday brands and companies.” 

“Years ago we teamed up with our first airline to unlock more ways to uplevel and innovate around travel experiences, thereby turning those customers into Lyft loyalists,” Lyft said in a statement. “We’re continuing to expand our horizons by joining forces with major brands who share our customer obsession, like Alaska Airlines, Chase, DoorDash, Mastercard, Hilton, Disney, and Bilt.”

Airlines have expanded their partnerships in recent years, as loyalty programs continue to rake in billions of dollars. Delta also has partnerships with Starbucks, Ticketmaster and Hertz.

Loyalty programs are one of airlines’ most lucrative assets. Delta also has a partnership with American Express and it is projected to receive $10 billion in remuneration from the credit card company in 2025. American Express already offers some cardholders credits for Uber rides and food delivery. 

Delta Goes All In on AI, Expands In-Flight Entertainment

The carrier made other splashy announcements at CES, including the launch of an AI-powered “assistant” to its app. The assistant will notify customers of passport expiration dates and visa requirements for trip planning. Delta said that the AI-powered assistant will eventually offer destination-specific notifications on the app, such as updates on weather conditions. 

At CES, Delta also unveiled a number of initiatives to improve its in-flight entertainment. The carrier plans to add bluetooth capabilities in all its cabins and use algorithms to recommend content to passengers. 

Delta is partnering with YouTube to provide in-flight content that passengers can access ad-free on most flights. Bastian also announced a new partnership with DraftKings as part of an expansion of its in-flight gaming options. 

Delta reports first-quarter earnings January 10. 

Airlines Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. 

Read the full methodology behind the Skift Travel 200.



Source link

About The Author

Scroll to Top