Amex builds on cardmember rewards offerings with Uber - Business Insider

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Adding new rewards to include enhanced food delivery and ride-hailing offerings may help Amex boost spending volume and increase its customer network

To encourage spending, Amex rewards for streaming, wireless services, restaurants, and supermarkets at the start of the pandemic as a way of tapping into shifting consumer spending habits. And its pandemic rewards strategy may have paid off since the card network saw steady improvement across most of its categories in .

Food delivery services may continue to see accelerated growth as the pandemic continues, which could lead to increased spending volume. Services like Uber Eats and DoorDash saw increased consumer demand amid stay-at-home orders in the spring and summer, with of consumers saying they maintained or increased the frequency of online food ordering in recent months.

Food delivery demand is likely to carry over into the winter months as outdoor dining phases out and coronavirus cases continue to rise. Therefore, Amex's food delivery rewards integration could help incentivize spending and lead to increased volume for the firm. And ride-hailing could become a popular alternative to public transport as the pandemic continues, leading to additional spending growth for Amex. As the crisis stretches on, public transportation could pose a risk to consumers, especially those in large urban areas like New York City, which has seen significant declines in As the winter months draw closer, ride-hailing services like Uber could be a safer alternative.

 

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