Delta Partners with Uber for Loyalty Program, Ending Collaboration with Lyft

Delta Partners With Uber for Skymiles Loyalty Program | Visionary CIOs

Delta Air Lines has announced a new partnership with Uber, linking its SkyMiles loyalty program to the ride-hailing giant. This decision marks the end of Delta’s eight-year collaboration with Lyft as the airline shifts its focus toward Uber’s larger customer base and expanded services.

Earning SkyMiles with Uber Services

Starting this spring, Delta SkyMiles members will be able to earn miles for various Uber services once their accounts are linked. Members can accumulate one mile per dollar spent on UberX rides to and from airports. Premium rides, such as Uber Comfort and Uber Black, will yield two miles per dollar, while Uber Reserve trips will earn three miles per dollar.

Uber Eats orders over $40, whether from restaurants or grocery stores, will also contribute to SkyMiles loyalty program earnings, with customers receiving one mile per dollar spent.

Uber’s CEO, Dara Khosrowshahi, emphasized the focus on making air travel more efficient and effortless, highlighting the importance of smooth airport transfers and travel experiences.

Loyalty Program Expansion and Partner Shifts

Delta has been expanding its network of partnerships for frequent flyer rewards, generating significant revenue through its loyalty programs. The collaboration with Uber adds to existing partnerships with brands like Starbucks, Hertz, and Ticketmaster.

The airline confirmed that customers who have linked their Lyft accounts will continue earning miles through April 7. A Delta spokesperson mentioned that linked account holders would receive direct communication about the transition in the coming days. Delta expressed gratitude for its previous collaboration with Lyft, which collectively rewarded customers with billions of miles.

Lyft, meanwhile, responded to the shift by highlighting its ongoing partnerships with other major brands, including Alaska Airlines, Chase, DoorDash, Mastercard, Hilton, Disney, and Bilt. The company emphasized its commitment to enhancing travel experiences despite the conclusion of its Delta partnership.

Strategic Move for Delta and Uber

Delta has not publicly disclosed the reason for the switch from Lyft to Uber. However, the airline’s credit card partner, American Express, offers credits for Uber rides and food delivery for some cardholders, which may have influenced the decision.

The financial benefits of loyalty partnerships remain significant for Delta. At a recent investor event, the airline estimated it would receive around $7 billion from its partnership with American Express in 2024, with a long-term goal of $10 billion annually.

Comparing Uber and Lyft

Uber’s larger customer base and service offerings may have contributed to Delta’s decision. As of the third quarter of the previous year, Uber reported 161 million monthly active users across its ride-hailing and food delivery platforms, with over 2.8 billion rides and deliveries completed. Lyft, by comparison, had 24.4 million active riders during the same period, with over 216 million rides booked.

Uber has also been expanding its services, recently introducing a shuttle service to New York’s LaGuardia Airport from Manhattan, further solidifying its position in the travel sector.

Delta’s Technology Upgrades Announced

The new partnership was revealed at the CES technology show in Las Vegas, where Delta also announced the launch of an artificial intelligence-powered assistant in its mobile app. Additionally, the airline plans to upgrade its in-flight entertainment systems as part of ongoing efforts to enhance the travel experience for its customers.

This collaboration between Delta and Uber aims to simplify travel logistics while offering more value to SkyMiles loyalty program members through expanded rewards opportunities.

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