U.S. grocery delivery app Instacart Inc and food delivery firm DoorDash Inc are planning to launch their own credit cards, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Both companies have witnessed a surge in order volumes over the last few months as consumers, hesitant to step out during the COVID-19 pandemic, take to their phones to get essential items delivered to their doorsteps.
JPMorgan Chase & Co will issue Instacart’s card and is also bidding to partner with DoorDash, which has received offers from more than 10 large banks, according to the report on.wsj.com/3s4K40E.
The Instacart credit card is not expected to launch until next year and cardholders would likely earn 5% cash back on their purchases, sources told the Journal.
DoorDash is also recruiting partner restaurants and stores to offer accelerated rewards, promotional offers and discounts to cardholders, according to a document reviewed by the newspaper.
The delivery companies declined to comment on the report.