McDonald & # 39; s said Tuesday it would be a collaboration with start-up for food delivery DoorDash, the first deal for the fast food giant ever since it was reported that it is considering ending his exclusive deal with Uber Eats earlier this year.
From July 29 DoorDash starts for McDonald's in Houston, Texas, where the more than 200 locations of the city are served. McDonald & # 39; s will also become a member of DoorDash & # 39; s Subscription Service, Dash Pass, which offers its 1 million members unlimited delivery costs on orders of $ 12 or more to select restaurants.
DoorDash, based in San Francisco, recently surpassed GrubHub to become the largest food delivery service in America, according to new credit transaction data from research firm Second Measure. DoorDash claimed 32 percent of sales in May 2019 at the food service companies Second Measure, compared to 31.7 percent for Grubhub. Uber Eats was third with 19.7 percent of sales.
In april, Bloomberg reported McDonald & # 39; s chafed under high fees from Uber Eats and thought about turning to other delivery partners. Referring to an internal memo, senior executives and franchisees from the hamburger chain met with Uber Eats to negotiate lower reimbursements. That encouraged by restaurant chains, including Applebee's and Cousins Submarines, to negotiate lower commissions and at the same time ask their delivery partners to spend more on marketing and promotional discounts, according to a Wall Street Journal article last month.
It was a big problem when Uber Eats and McDonald & # 39; s first announced their partnership in early 2017. The fast food chain was prominent in Uber & # 39; s S-1 application with the Securities and Exchange Commission prior to the IPO. The submission contained a full two page & # 39; s dedicated to collaboration with McDonald & # 39; s. It says that Uber Eats accounts for no less than 10 percent of food sales at a number of restaurants in the hamburger chain.
McDonald & # 39; s represents DoorDash's largest restaurant chain to date. The delivery company has been flying high since $ 2 billion in financing from investors including Softbank. It was last valued at $ 12.6 billion, almost double the market capitalization of $ 6.5 billion from the Grubhub. DoorDash and Uber Eats are not profitable, while Grubhub is.
"McDonald & # 39; s is a customer favorite and a leader in its field, and it is an honor to offer their loyal fan base more ways to enjoy McDelivery through DoorDash," said Christopher Payne, Chief Operating Officer of DoorDash
A Uber spokesperson did not immediately respond to a request for comment.