Domino’s, the world’s largest pizza company in terms of sales and stores, has signed an agreement with Uber to include its menus on its Uber Eats and Postmates delivery apps in the US. the company has announced. Although orders will continue to be delivered by uniformed Domino’s drivers, the company hopes that including its menus in the apps will expose it to more potential customers.
The pizza chain has been a notable hurdle in the shift to third-party delivery apps in the US, which The Wall Street Journal previously reported It can increase sales but hurt profit margins and disrupt the direct relationship between the restaurant and the customer. Other pizza brands, Papa John’s and Pizza Hut, already work with third-party delivery apps in the US A Wisconsin-based pizza chain told the Diary that the absence of Domino’s in the apps actually helped drive business to other chains.
“We can bring them a lot of new customers”
Rollout is expected to begin this fall in four pilot US markets, including Las Vegas, the newspaper reports, and it should be available nationwide by the end of the year. The agreement also applies internationally, where Domino’s notes that the two companies have 27 international markets in common, covering 70 percent (approximately 14,000) of their global stores. Domino’s already lists its pizzas on Uber Eats in some international markets like the UK, I can confirm.
“Domino’s will continue to be the face our customers see in the door, while Uber will provide us with the right data to understand the efficiency and incrementality of deliveries,” Domino’s CEO Russell Weiner said in a statement, adding that the company will continue to operate its own business. platform with “our best offers and an industry-leading loyalty program”. The deal includes one year of exclusivity for Uber.
“We are pleased to announce this unique partnership with Domino’s globally, starting as their exclusive third-party market partner in the US and making their menu available to our consumer base around the world, and we look forward to providing customers the convenience, technology and experience that are fundamental to our two brands,” Uber CEO Dara Khosrowshahi said in a statement.
The covid pandemic is cited as behind a huge growth in the popularity of food delivery apps, whose sales continue to grow even as direct orders to restaurants stagnate. Market research firm Circana estimates that about 14 percent of pizza sales were made through third-party apps in the 12 months ending May 28. wsj notes, up from 4 percent before the pandemic. “We can bring them a lot of new customers who don’t order from them as often or who don’t have Domino’s as a priority,” said Uber’s head of delivery for the Americas, Sarfraz Maredia. told the Diary.