Delta's Ride-Hailing Switch: Uber Over Lyft for SkyMiles Members

Delta Air Lines is set to shake up its ride-hailing partnership landscape by switching from Lyft to Uber, a move that could significantly impact its loyalty program and customer base. This strategic shift, announced at the CES tech show in Las Vegas, will expose Delta's SkyMiles members to a broader user base and offer more ways to earn miles and engage with the brand.



Uber's larger user base, with 161 million monthly active users compared to Lyft's 24.4 million active riders, will provide Delta with increased reach and exposure. This expanded customer base could drive more miles earned and engagement within the SkyMiles loyalty program. Additionally, Uber's diverse service offerings, including ride-hailing, food delivery, and freight, present Delta with additional opportunities to engage customers and offer rewards.



The new partnership with Uber also offers Delta SkyMiles members more miles per dollar spent on rides compared to the previous one with Lyft. With Uber, members can earn one mile per dollar on UberX airport rides, two miles for every dollar spent on premium rides, and three miles per dollar on Uber Reserve trips. In contrast, Lyft offered one mile per dollar on all rides, two miles per dollar on airport rides, and a 50% discount on the first two rides for new members. Furthermore, Uber's partnership includes earning miles on Uber Eats food deliveries, which Lyft does not offer. Frequent travelers may find more value in the new partnership with Uber.

Delta's switch to Uber could significantly impact its revenue and market share, considering Uber's larger user base and global presence compared to Lyft. As of 2024, Uber has 161 million monthly active users, while Lyft has 24.4 million active riders. This vast user base can translate into increased mileage earnings for Delta SkyMiles members, driving more bookings and revenue. Additionally, Uber's global presence can expose Delta to new markets and customers, potentially boosting its market share.



Delta's partnership with Lyft aligned with its overall business strategy and long-term goals by offering customers a seamless travel experience, from door-to-gate. By allowing customers to earn miles on Lyft rides, Delta incentivized their use of the ride-sharing service, increasing customer loyalty and engagement. This partnership also helped Delta tap into the growing ride-sharing market, expanding its reach and appeal to younger, tech-savvy customers. Delta is exploring other strategic alliances and investments to enhance its competitive position, such as partnerships with Starbucks for miles on purchases and Hertz for car rentals and mileage earnings. The airline is also investing in technology, such as AI-powered assistants and in-flight entertainment upgrades, to improve the overall customer experience and maintain its competitive edge.

In conclusion, Delta's switch from Lyft to Uber as its ride-hailing partner offers strategic advantages, including increased reach, diverse service offerings, and more miles per dollar spent on rides. This partnership could significantly impact Delta's revenue and market share, given Uber's larger user base and global presence. While the success of this partnership will depend on factors such as the ease of linking accounts, the value proposition for users, and the integration of features like in-app flight status updates, Delta's move to Uber aligns with its overall business strategy and long-term goals.