Domino’s Pizza has partnered with Uber Eats and Postmates as the exclusive third-party delivery service for the franchise while continuing to use trained Domino’s delivery drivers. The initial rollout of the partnership is anticipated to happen this fall with access to delivery through the apps by the end of 2023.
According to the Domino’s press release, this agreement will create an opportunity internationally to unify the pizza chain and delivery app across the 27 markets they share globally, which would enable access to 70% of Domino’s locations around the world.
The pizza company is a late entry into the third-party delivery service world, as it long held the belief that partnering with delivery apps could impact profit margins and customer relations, according to an article on The Verge. With the pandemic being a factor in driving engagement on third-party delivery apps, Circana reported approximately 14% of pizza sales were made using an app, up from 4% before the pandemic.
Former CEO Ritch Allison said, “When I take a look at our U.S. business, I don't see any need for us to go onto these third-party platforms." He continued a couple years later in the same vein, “Every time we look at it here in the U.S., it just doesn't make sense for us or our franchisees economically."
However, a notable decline in delivery sales has encouraged Domino’s and its new CEO, Russell Weiner, to reconsider. "Domino's has a history of successfully entering new marketplaces," said Weiner in Domino’s press release. "We are the leader in the delivery and carryout pizza marketplaces in the United States. In addition, Domino's sells more food on its digital platform than any pizza company in America. Now that aggregators are at scale, the next logical marketplace for us to enter is order aggregation. Our research in the United States 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."
According to the Wall Street Journal, Weiner estimates a billion dollars in sales with Domino’s partnership with Uber Eats.
Domino’s customers will be able to:
- Order delivery from their local Domino's store menu
- Track their order using Domino's Tracker or through the Uber Eats app
- Receive deliveries by uniformed Domino's drivers
And Uber One and Postmates Unlimited members will receive delivery with no charge on their Domino's orders when using the Uber Eats and Postmates platforms.
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