Grubhub Tips DoorDash With Amazon Canada Partnership

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DoorDash has changed its tune, at least in Canada, after saying that its DashPass subscription growth strategy will be based on organic channels rather than partnerships.

On Tuesday, June 6, the aggregator announced a partnership with Amazon Canada to give free, yearlong DashPass memberships to Prime subscribers in the country, assuring free delivery and credit back on pickup items.

Shilpa Arora, General Manager of DoorDash Canada, says, “We’re always looking for ways to connect Canadians with the best of their neighborhood.” For Canadian Prime subscribers, “this new offer will unlock the incredible benefits and perks of DashPass.”

The aggregator is following competitor Grubhub’s lead with this alliance since it has an almost exact arrangement with Amazon in the US as of late July. Grubhub announced an extension of the collaboration on Monday (June 5), providing cost-free two-year memberships for a brief while before resuming its yearlong deal.

Given that DoorDash Chief Financial Officer Prabir Adarkar explicitly stated earlier this year that the company’s strategy for accelerating DashPass growth eschewed partnerships in favor of channels that the company believed offered more reliable long-term growth, the company’s decision to successfully replicate the deal by DoorDash Canada is particularly noteworthy.

As opposed to some of our rivals, our growth hasn’t been driven by partnerships, according to Adarkar, who made this statement in February. “Others are utilizing that as a strategy for competition. Our growth is mostly driven by our own channels as well as conventional performance marketing channels, at least in terms of the DashPass program. So, it isn’t motivated by partnerships. These are natural pathways that eventually influence the product and [what] we have observed in it.