Domino’s pies are coming to Uber Eats as delivery app-ettite heats up
Tastier than a cheese pull… Pizza lovers will soon be able to order Domino’s on Uber Eats and Postmates. The world’s largest pizza biz serves 1M+ customers daily, and this is its first delivery-app partnership in the US. Domino's has long avoided third-party delivery in the States, preferring to handle orders through its own (popular) app and nearly 7K+ locations. Now:
New screen: Starting this fall, Domino’s will list on Uber Eats in four cities, including Las Vegas, and expand to the rest of the country by year’s end.
Same driver: Domino’s will still use its own delivery drivers for Uber orders, to ensure quality control and track its ’zas (#DeliveredHot).
Pricey slices: The pizza powerhouse expects to generate $1B in extra sales through the deal, with Uber as its exclusive partner through 2024.
The OG pizza deliverer… Domino’s had long been an outlier (#rebel) for exclusively handling its own orders and deliveries, allowing it to keep 100% of each sale (instead of paying fees to apps). But the calculus may’ve changed as Uber and DoorDash take a bite out of Domino’s revenue. Food-delivery apps made up 14% of all pizza sales in the US over the past year — nearly 3X higher than prepandemic. Rivals like Papa John's and Pizza Hut have been on third-party apps since 2019, and Little Caesars joined Uber in April. Now Domino’s execs think the app-y opportunities outweigh the risks of losing full control.
Have your pie and eat it too… By listing on Uber but still delivering its own pies, Domino’s can keep its satisfaction guarantee while gaining exposure to new customers. Uber also plans to share some customer order data with Domino’s. Meanwhile, loyal fans will likely keep using the Domino's app for exclusive offers. Investors seemed to find it all pretty tasty: after yesterday’s announcement, Domino’s stock jumped 11%.