Domino’s Pizza in the US has entered into a global agreement with Uber Eats Marketplace, meaning customers can order products through the Uber Eats and Postmates apps. It’s expected to be enabled by the end of the year.
This brings an end to Domino’s policy of refusing to do business with a third-party aggregator in the US, preferring to use its own app and website. Two years ago, company CFO, Stu Levy, made his views clear: “We struggle a little bit understanding the long-term economics in some of the aggregator businesses. We have questions about the viability of that long term, if you’re an independent, paying exorbitant fees for a third party to step into your value chain.”
The surprise announcement led to a sharp 11% boost in Domino’s stock price. It comes off the back of a difficult start to 2023, with the chain confirming a 2.1% decline in same-store delivery sales in the first financial quarter, year-on year. “Domino’s has a history of successfully entering new marketplaces,” said CEO, Russell Weiner. “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 US 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,” said Weiner.
Late last year, Domino’s in the UK confirmed an exclusive partnership with Just Eat, following a successful six-month trial in 100 stores.
