In a previous post I took an in-depth look at the new Lyft benefits, and in this post I wanted to take a closer look at the new DoorDash benefits, especially as all of these benefits are now live.
New Chase Sapphire Reserve DoorDash benefits
The Chase Sapphire Reserve offers two DoorDash benefits, both of which are limited time — cardmembers get $60 in annual DoorDash credits, and cardmembers also receive a DoorDash Plus membership.
For those of you not familiar with DoorDash, they’re a food delivery service available in over 850 cities in North America, and they deliver from all kinds of restaurants.
Chase has struggled to make money with the Sapphire Reserve (the card is just that lucrative), so they clearly felt an annual fee hike was necessary. Understandably they wanted to add some benefits to take the sting out of this, and I think it’s highly likely that they’re paying very little for this.
Chase has access to a lucrative customer base, and it’s logical other companies would want to provide benefits to those members, even if they’re picking up a majority of the cost.
So, how do the Chase DoorDash benefits work?
Receive $60 annual DoorDash statement credit
The Sapphire Reserve now offers a $60 annual DoorDash credit. Unfortunately this benefit isn’t valid forever, though. You receive a $60 statement credit in 2020 and a $60 statement credit in 2021 — that’s it as of now, as there are no plans to offer this benefit in 2022.
The good news is that this credit is straightforward to use — just charge a DoorDash purchase to your Sapphire Reserve, and you’ll automatically receive a statement credit for the first $60 you spend on the card with DoorDash in a calendar year.
When it comes to the Chase Sapphire Reserve DoorDash statement credit:
- The statement credit will post to your account the same day as the regular purchase does
- There’s no registration required
- You can use the benefit across as many transactions as you need to
- This credit isn’t broken up by month, or anything, and there aren’t any major hurdles to using this
- You can’t use the credit to buy DoorDash gift cards, since that’s coded differently
Receive a DoorDash DashPass membership
The Sapphire Reserve now offers a complimentary DoorDash DashPass membership, valid for at least a year. This is a one time benefit for each cardmember, so you can’t take advantage of it multiple times.
DoorDash DashPass ordinarily costs $9.99 per month, so that’s potentially up to a ~$120 value.
How long is the DashPass valid?
This is something that’s causing quite a bit of confusion, so let me clarify:
- If you register now (or anytime in 2020), the benefit will be valid through December 31, 2021; so if you registered now the benefit would be good for significantly more than a year
- As long as you activate by December 31, 2021, you’ll get a minimum of a one year DashPass membership
In other words, registering now gets you nearly two years. Meanwhile if you registered anytime in 2021, it would be valid for a year.
What are the perks of DoorDash DashPass?
With DoorDash DashPass, you pay a $0 delivery fee when ordering from thousands of restaurants nationwide. Just place an order totaling at least $12 at a restaurant with a blue checkmark next to it, and you’ll get a $0 delivery fee and reduced service fee. DoorDash claims that this saves you an average of $4-5 per order.
How much do you really save with DashPass?
Let me give a real life example of how much you actually save with DashPass, compared to using DoorDash without it. Say you’re craving three 10 piece McNuggets (or whatever the chef recommends, if they’re out) from your local fine dining establishment.
Before any fees, the total comes out to $19.17.
Ordinarily DashPass would charge sales tax, a 10% service fee (included in the “taxes and fees” total), a delivery fee of $2.99, and then you can add a tip.
If you placed the same order with a DashPass account you would instead just pay the sales tax, a reduced 5% service fee, and then you can add a tip.
On this particular order you’re saving $4. Obviously the savings become more substantial with bigger orders, where the 5% difference in fees can add up.
Generally you can expect that DoorDash will have the same menu pricing as restaurants do directly, so there’s usually no markup there.
Tip: You can also use DoorDash for pick-up
While DoorDash is primarily a delivery service, if you wouldn’t get value out of that or don’t like delivery, you can also use DoorDash to place a pick-up order with many restaurants.
That way you’ll pay fewer fees, and you can still take advantage of the credits.
How do you register for the free DoorDash DashPass membership?
If you’re a new cardmember, start by creating an account with DoorDash. Once you have an account (or if you’re an existing member), go into your DoorDash profile to the “Payment Cards” section. Once there, add the Sapphire Reserve.
At that point you should get a pop-up offering you a free membership, based on the card you have.
If you’re an existing cardmember and have an eligible card linked, simply remove it and re-add it, and you should see this offer.
It can be a good value to add authorized users to the Sapphire Reserve. The cost to do so is $75 per authorized user, and then you’ll earn 3x points for their dining and travel spending, and they can also receive a Priority Pass membership.
So, which of these new DoorDash benefits apply to authorized users?
- The $60 DoorDash statement credits in 2020 and 2021 are per primary account, so while authorized user spending can be reimbursed, you don’t get any additional credits for having authorized users
- Authorized users do get an additional DashPass, though note that the clock starts when the first person on the account activates their membership (that doesn’t matter if you register in 2020, but does matter if you register in 2021, since the 12 month clock would start)
Tip: take advantage of a DoorDash sign-up bonus
If you’re not yet a DoorDash customer, they have some referral opportunities:
- Sign up through TopCashback and you’ll get $15 back on your first order
- Alternatively you can sign up through a referral link and you’ll get $5 back on each of your first four orders (unfortunately the terms prohibit sharing these with people you don’t know)
Is the Chase Sapphire Reserve still worth it?
The Sapphire Reserve was almost universally considered to be worthwhile before the annual fee increase. The card offers:
- A $300 annual travel credit
- 3x points on dining and travel
- A Priority Pass lounge membership
- Car rental coverage, as well as valuable travel protection
- The ability to redeem Ultimate Rewards points for 1.5 cents each towards travel purchases
But how does the math change with the annual fee having been increased by $100? That depends on how much you value the new DoorDash and Lyft benefits.
Personally I’ll definitely be coming out ahead in the next year, and I think that’s also the case for anyone who uses DoorDash and/or Lyft with any frequency. The big question is what benefits will be added long term for cardmembers.
I do believe the Sapphire Reserve is still one of the all around best travel rewards cards, assuming you live in a market where you can benefit from these new perks.
Hopefully the above is a useful rundown of the new DoorDash perks being offered with the Sapphire Reserve. While the $100 annual fee hike is a negative, many people will benefit from the DoorDash and Lyft perks, at least in the next couple of years.
The concern is that the annual fee is increasing permanently, but all of the DoorDash and Lyft benefits are only valid through 2022 at the latest. So that will change the math for some people on these cards in the future. My guess is that Chase plans to offer similar types of benefits in the future, since they should get lots of interesting data from these partnerships.
As far as these DoorDash perks go, I’ll certainly get value out of this. Personally I’ve historically ordered through Postmates (out of habit), though I’ll at least be switching some of that to DoorDash.
Heck, I ordered dinner last night through DoorDash, so I took advantage of the DashPass benefits, and the dinner was otherwise covered through the $60 credit.
How much value do you think you’ll get out of the Sapphire Reserve DoorDash benefits?