Sears (NASDAQ: SHLD) has high hopes for its Shop Your Way app, which offers members rewards for buying things, which can in turn be redeemed for merchandise or services.
While Sears owns Shop Your Way, the app also offers users reward points for spending money with various partners. Top ride-sharing service Uber has been an early partner, and now the two companies are expanding their relationship.
What are Sears and Uber doing?
The two companies have expanded their existing partnership to 23 new markets after testing it in Chicago and New York earlier this year. Under the program, if Shop Your Way members link their accounts to Uber, they can earn up to $2 in points for every trip they take with the ride-share service.
Since its launch, Sears reported in a press release, more than 10,000 Shop Your Way members have linked their accounts to Uber, earning more than $250,000 in points in just over two months. Those points can be redeemed online or in-store at Sears, Kmart, Lands’ End, or through the Shop Your Way website or app.
“Expanding the program during the holiday season is especially timely, because we know members are using Uber to shop,” said Leena Munjal, senior vice president, customer experience and integrated retail, Sears Holdings. “In fact, Black Friday was the biggest points-issuing day in November. We’ve had some riders already earn more than $300 in points. We’ve also had driver-partners who have earned $1,000 in points in addition to their Uber earnings.”
Is this a good idea?
Anything that brings attention to Shop Your Way is a good thing for Sears. During the company’s recent Q3 earnings call, executives spoke of the rewards program as an important part of the chain’s future. They also said that they have so far spent $2 billion on the technology, but did not mention any revenue numbers.
Uber is a good partner with a value-conscious user base. It remains to be seen as to whether its customers will want to use a Sears app, but it’s smart (and low risk) for the company to try. Uber is just one arrow in the Shop Your Way quiver, but it’s one that could win some people over.
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Daniel Kline has no position in any stocks mentioned.
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