He also said the agreement leaves the door open to other partners, including DoorDash. Peter Saleh, a managing director and restaurant analyst with the investment bank BTIG, said Wednesday that the deal was “the best possible path” for Domino's, which will still control the delivery experience and access data. The company wouldn't say how many drivers it has in the 28 markets nearly all Domino's stores are independently operated by franchisees. last year, while international same-store sales were flat.ĭomino's said Wednesday that its labor challenges have largely abated over the last year, and it's confident it will be able to meet increased demand from Uber Eats orders. The company's same-store sales, a key metric of a restaurant's health, fell 1% in the U.S. Domino's global retail sales grew 6% in the same period.ĭomino's has been struggling with higher food costs, labor shortages and increasing competition. In the first quarter of this year, Uber Eats' deliveries grew 12% to $15 billion, excluding the impact of currency fluctations. Russell Weiner, who took over as Domino's CEO in 2022, said in a statement that third-party delivery operators have reached such a large scale that it makes sense for Domino’s to partner with them. Little Caesar's, the third-largest pizza chain in the world, inked a delivery deal with Uber Eats in April. pizza sales, or $4.7 billion, up from 4% before the pandemic, according to Circana, a market research firm. In the year ending May 28, Uber Eats, DoorDash and other delivery companies accounted for 14% of U.S. Domino's found itself losing market share to competitors who were available via third-party apps. Demand for delivery soared and remained elevated even as COVID waned. In 2019, then-CEO Ritch Allison predicted that third-party delivery would eventually collapse because companies were charging too little for the service.īut then the pandemic happened. because it wanted to control the delivery experience. partner until at least 2024.ĭomino's shares jumped 10% in morning trading.ĭomino's had been reluctant to partner with third-party apps in the U.S. markets starting this fall and is expected to be available nationwide by the end of 2023, Domino’s said. The partnership will be piloted in four U.S. ![]() ![]() Ann Arbor, Michigan-based Domino's wouldn't say what percentage Uber Eats will take from each order. Under the agreement, uniformed Domino’s drivers will still make the deliveries that customers order via Uber Eats, and Uber Eats will share data with Domino's on delivery efficiency and incremental sales. While franchisees in a handful of international markets like the Netherlands have been working with third-party apps for years, Domino's has long said that partnering with delivery companies didn’t make economic sense in its 6,600 U.S. In a major reversal, Domino’s Pizza said Wednesday it’s partnering with Uber Eats to make deliveries in the U.S.
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