Delta SkyMiles Partners with Uber, Ends Lyft Alliance
Delta Air Lines is set to enhance its SkyMiles loyalty program by partnering with Uber, allowing members to earn miles for their ride-hailing and food delivery services starting this spring. This new collaboration marks the end of Delta’s eight-year partnership with Lyft, as the airline shifts its focus to a more extensive and widely recognized ride-sharing platform.
Beginning in the spring, Delta SkyMiles members will be able to earn miles when they use Uber for various services. The partnership allows members to accumulate one mile per dollar spent on UberX airport rides, two miles for every dollar on premium options like Uber Comfort and Uber Black, and three miles per dollar on Uber Reserve trips. Additionally, for those who utilize Uber Eats for food delivery, members will earn one mile for every dollar spent on orders over $40 from participating restaurants and grocery stores. This initiative aims to make the airport travel experience more efficient, affordable, and enjoyable for Delta’s loyal customers.
Uber CEO Dara Khosrowshahi expressed enthusiasm about the partnership, stating, “With a record number of travelers taking to the skies, we’re focused on helping to make your airport travel journey as efficient, affordable, and effortless as possible.” This collaboration is part of a broader trend where airlines are expanding their partnerships to include various services that enhance the overall travel experience, thereby increasing the value of their loyalty programs.
Delta’s decision to end its partnership with Lyft comes after eight years of collaboration. Customers who have linked their Lyft accounts to Delta SkyMiles will still be able to earn miles through April 7, 2025. Delta emphasized its appreciation for the partnership, noting that it has benefited loyal customers who have collectively earned billions of miles over the years. However, the move to Uber signifies Delta’s strategic shift towards partnering with a platform that has a larger user base and more comprehensive service offerings.
While Delta did not provide specific reasons for the switch, the transition aligns with the airline’s efforts to streamline its loyalty program and offer more diverse earning opportunities for its members. It’s worth noting that Delta’s credit card partner, American Express, also provides Uber credits for certain cardholders, further integrating Uber services into Delta’s ecosystem.
This partnership with Uber complements Delta’s existing collaborations with other major brands, including Starbucks, Hertz, and Ticketmaster, enhancing the overall value proposition of the SkyMiles program. By integrating Uber’s extensive ride-hailing and food delivery services, Delta aims to provide its members with more ways to earn and redeem miles, thereby increasing customer engagement and loyalty.
The new partnership was announced at the CES tech show in Las Vegas, where Delta also revealed plans to launch an artificial intelligence-powered assistant within its app and upgrade its in-flight entertainment systems. These initiatives are part of Delta’s broader strategy to leverage technology to improve the customer experience and stay competitive in the rapidly evolving airline industry.
Delta Air Lines is optimistic about the financial benefits of its partnerships. During an investor day in November, Delta estimated that it would generate approximately $7 billion in 2024 from its collaboration with American Express, with a long-term target of $10 billion annually. This projection underscores the significant revenue potential that comes from strategic partnerships and a robust loyalty program.
Meanwhile, Uber continues to expand its services and user base. As of September, Uber reported having 161 million monthly active users across its ride-hailing and food delivery platforms, with over 2.8 billion rides completed in the third quarter alone. This growth highlights Uber’s strong market presence and its ability to attract a diverse range of customers, making it an attractive partner for major airlines like Delta.
In contrast, Lyft reported having 24.4 million active riders by the end of the third quarter, with a record 216 million rides booked during that period, marking a 16% increase from the previous year. Despite this growth, Delta’s decision to partner with Uber suggests a strategic preference for a platform with a broader reach and more integrated service offerings.
As Delta and Uber move forward with their partnership, SkyMiles members can look forward to more opportunities to earn miles through their everyday travel and delivery needs. This collaboration not only enhances the value of Delta’s loyalty program but also reinforces the airline’s commitment to providing seamless and rewarding experiences for its customers.
In summary, Delta Air Lines’ new partnership with Uber represents a significant shift in its loyalty program strategy, offering SkyMiles members enhanced earning opportunities while ending a long-standing relationship with Lyft. This move is expected to strengthen Delta’s position in the competitive airline industry by providing greater value and convenience to its loyal customers.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com