Two of the biggest winners in the pandemic delivery boom are looking to launch their own credit cards.
Grocery-delivery service Instacart Inc. has chosen JPMorgan Chase & Co. to issue a credit card that will reward frequent users, according to people familiar with the matter. DoorDash Inc., which specializes in delivering takeout, is also looking to launch its own rewards credit card and received offers from more than 10 large banks and financial-technology firms to issue it, people familiar with the matter said.
Both Instacart and DoorDash have benefited from the surging popularity of at-home delivery for groceries and meals. They are betting that at least some of the increased demand will remain after the pandemic ends and hoping that the cards will stoke customer loyalty and attract new users.
Banks, for their part, see these new partnerships as a way to diversify beyond travel rewards cards, which fell out of favor with some consumers when the coronavirus pandemic brought travel almost to a standstill. Travel co-branded cards, such as those issued for airlines or hotels, have traditionally drawn affluent consumers who are also big spenders.
JPMorgan has been choosy about its co-brand partners. Many of its partners are airlines and hotels, and it also issues co-branded credit cards for Amazon.com Inc. and Starbucks Corp. Its decision to pursue delivery-service companies suggests it is branching into new areas.