Domino’s, the world’s largest pizza company in terms of sales and stores, has entered an agreement with Uber to list its menu on Uber Eats and Postmates. The deal indicates that Domino’s is reversing its stance against working with third-party delivery companies in the U.S. Shares of Domino’s soared more than 10% on the news in early trading.
The initial rollout will begin this fall in four pilot markets, with ordering on the Uber Eats and Postmates apps expected to be available across the country by the end of the year. The Wall Street Journal reports that Domino’s is listing its menu on Uber Eats and Postmates in 28 of its markets, including Canada.
Orders placed on the Uber Eats platform will be delivered by uniformed Domino’s drivers. After placing an order, customers will be able to track their order using Domino’s Tracker or through the Uber Eats app.
The deal comes as Domino’s competitors, including Pizza Hut and Papa John’s, have already been working with third-party delivery apps in the U.S. since 2019.
Increased Accessibility for Domino’s
“Our research in the U.S. and learnings from 13 of our international markets has shown us that taking orders using the Uber Eats Marketplace provides access for Domino’s and its franchisees to a new segment of customers and what we believe will be a meaningful amount of incremental delivery orders once it’s widely available,” said Domino’s CEO Russell Weiner in a statement.
Weiner told The Wall Street Journal that the chain and its operators aim to generate a billion dollars in new sales by listing its menus on Uber’s apps. He also stated that franchisees will profit from those new sales.
“We’re excited to announce this unique partnership with Domino’s globally—both starting as their exclusive third-party marketplace partner in the U.S. and making their menu available to our consumer base around the world—and we look forward to bringing customers the convenience, technology, and experience that are foundational to both of our brands,” said Uber CEO Dara Khosrowshahi in a statement.
Domino’s says Uber Eats will be its exclusive third-party platform in the U.S. until at least 2024, which indicates that Domino’s could potentially make its menu available on other food delivery apps, like DoorDash and Grubhub.
Positive Market Response
The agreement between Domino’s and Uber has had a significant impact on the market. Shares of Domino’s soared more than 10% on the news in early trading, indicating strong investor confidence in the partnership’s potential. This partnership allows Domino’s to tap into the expanding demand for food delivery services and gain access to a new customer base.
Fierce Competition among Pizza Chains
As Domino’s joins its competitors, including Pizza Hut and Papa John’s, in partnering with third-party delivery apps, the fierce competition in the pizza industry intensifies. This move highlights the importance of adopting innovative strategies and embracing digital platforms to capture market share. Each pizza chain strives to offer convenient and efficient delivery options to cater to the growing consumer demand for online ordering and food delivery.
In conclusion, Domino’s decision to list its menu on Uber Eats and Postmates represents a significant shift in the company’s approach to working with third-party delivery companies. This partnership opens up new opportunities for Domino’s to reach a wider customer base and generate substantial revenue. With Uber Eats as its exclusive third-party platform in the U.S., Domino’s is well-positioned to leverage the increasing popularity of food delivery services. As the competition among pizza chains intensifies, it will be interesting to see how this partnership benefits Domino’s in the long run.