DoorDash adds cheaper subscription tier for takeout-hungry students

Food delivery platform DoorDash is adding a new, cheaper plan called DashPass for Students. It costs $4.99 per month, half of the regular $9.99 DashPass plan, and offers similar benefits, including: Free delivery on eligible orders above a minimum threshold (usually $12 for restaurants and $25 for groceries); five percent credit on takeout orders from select restaurants; and access to other members-only promotions.

DoorDash’s announcement says that student membership will be available to “all undergraduate and graduate students at accredited colleges and universities in the US,” and it’s partnering with SheerID to verify student status. The website adds that subscribers are free to “cancel at any time,” with no penalty or penalty for cancellation.

Subscriptions like this are usually offered as a way to build loyalty from customers who have an increasing number of delivery apps to choose from. Uber offers its own subscription plan for $9.99 per month, which includes similar free delivery options on Uber Eats, in addition to perks with Uber’s ride-hailing service. Grubhub also offers a $9.99 monthly subscription.

By focusing on students, DoorDash hopes to cash in on a lucrative share of the market. It cites a recent survey that suggested 70 percent of college students use a delivery app at least once a week — and that they make an average of four orders every seven days. That’s a lot of delivery costs that students could save with DoorDash’s new, more affordable plan.

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