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By Tina Bellon and Hilary Russ
NEW YORK (Reuters) – Ride-sharing service Lyft Inc will give its most loyal members free restaurant delivery from Grubhub Inc beginning Tuesday, a partnership that could hit their shared rival Uber Technologies Inc.
The agreement may steer Lyft customers away from Uber Eats while driving more restaurant orders to Grubhub+, which provides free food delivery for its paying members.
Lyft’s VP of marketing, Heather Freeland, said in an interview that the partnership was “not about going head to head” with Uber, but simply intended to offer more benefits to Lyft Pink members who had asked for food delivery perks in a survey the company conducted.