Delta Dumps Lyft at the Curb… and Uber Rolls Up with $10 Billion in the Trunk

Delta Air Lines just pulled the C-Suite equivalent of a ding-dong ditch, slamming the door on an eight-year partnership with Lyft and running straight into Uber’s arms. 

Starting this spring, Delta’s 120 million SkyMiles members can earn rewards not just for flying but also for hitching rides with Uber and ordering from Uber Eats. On the other hand, Lyft is left on the porch, staring at the taillights of Delta’s departing loyalty program.

To put it bluntly… this was a huge upgrade. Uber’s 161 million monthly active users completely dwarf Lyft’s 24.4 million. For Delta, the decision was as clear as choosing between a first-class seat and a middle seat in the last row next to the smelly bathroom.

Under the new deal, SkyMiles members can earn one mile per dollar spent on UberX airport rides, two miles for fancier options like Uber Comfort or Uber Black, and three miles for Uber Reserve trips. Even late-night Uber Eats orders over $40 earn a mile per dollar. It’s another layer in Delta’s growing loyalty ecosystem, which already ropes in Starbucks, Hertz, and Ticketmaster. Delta’s message is clear: whether you’re sipping coffee, renting a car, or ordering a midnight burrito, they want a slice of your spending… and they’ll reward you for it.

But don’t be fooled… this is far more than just about customer perks. SkyMiles is a money-printing machine for Delta. Its partnership with American Express, which buys miles to dangle as credit card perks, pulled in $1.8 billion last quarter alone. By 2025, Delta expects that number to balloon to $7 billion, with a long-term goal of $10 billion annually. Let’s just say… with profit margins of over 50%, Delta’s loyalty program is making passengers and investors pretty happy. 

Lyft (the company who just got freshly dumped) is doing its best to act unbothered. The company pointed to other partnerships with Alaska Airlines, Chase, DoorDash, and Disney, essentially saying, “We’ve still got options.” But as much as they try to have their “hot girl summer”... losing Delta hurts. Lyft may have booked a record 216 million rides last quarter, but Uber is playing a different game entirely, with 2.8 billion rides (including deliveries and freight) over the same period.

The timing of this shakeup is interesting, too. Airline loyalty programs are under the regulatory microscope, with critics calling out “dynamic” pricing that makes it nearly impossible for travelers to gauge what their miles are actually worth. But Delta seems unfazed, doubling down on its strategy to turn everyday purchases into SkyMiles-generating opportunities. Delta and American Airlines have more than doubled their revenue from selling miles to credit card companies over the past eight years. 

Finally, the sad story here is that Lyft’s stock took a punch after the announcement, falling 6.7%... proving just how much this partnership meant to the smaller ride-hailing company. 

P.S. In the grand scheme of things, IF Stocks.News premium isn’t for you, you can always go back to trading and investing the same way you are now. The worst you are out is a measly $20 dollars… so why not take the leap and see EXACTLY how 2,000+ premium members are uncovering opportunities most traders never see? It’s a no-brainer. Click here to check out Stocks.News premium today…

Stock.News has positions in Delta, Lyft, Uber, Disney, DoorDash, Ticketmaster, Alaska Airlines, Starbucks, and Hertz mentioned in article.