Lyft partners with United in a new airline miles alliance
Lyft’s previous partnership with Delta ended in April.
Lyft has found a new big four airline to collab with.
In Lyft’s second-quarter earnings report a few months ago, the No. 2 US ride-hailing company teased that it was working on something with United Airlines but didn’t get into specifics. Today, we learned what it is: a rewards partnership that will give customers the ability to earn United miles, or use United miles, to pay for Lyft rides.
According to Lyft, riders who are members of United’s MileagePlus loyalty plan will earn one mile per $1 spent on daily Lyft trips. Customers using a company business profile will earn two miles per $1, while airport rides and premium ride types like Lyft Black or “Extra Comfort” will net three miles per $1. Airport rides that are scheduled first will dole out four miles per $1.
New and existing Lyft users who take two rides within 30 days of signing up and linking their United rewards account can earn 1,000 bonus miles.
Travel rewards alliances have worked out for Lyft. In 2018, the year after it launched its reward partnership with Delta Air Lines (a relationship that ended in April), Lyft’s market share grew from 22% to 23%. Lyft’s shares closed down nearly 7% in the first trading day after news broke that the Delta partnership would dissolve.
In its earnings report posted last month, United said revenue from its loyalty program rose 9% from last year — a better growth rate than its sales of both premium and basic economy tickets. On Tuesday, the airline announced the launch of a new, $4 per month debit rewards card.
Uber, which became Delta’s new ride-hailing partner earlier this year, has said 15% of its rides begin or end at an airport. If Lyft’s figure is similar, it’s clear why the company is targeting these rewards members.
