Dominos expands Uber Eats partnership as US comp sales slide

Dominos expands Uber Eats partnership as US comp sales slide

Domino’s, the global pizza giant, is gearing up for a nationwide launch of its partnership with Uber Eats as it seeks to revitalize its delivery business. While the company has yet to significantly invest in marketing for this venture, it views the partnership as an opportunity to leverage the strength of two major platforms.

According to Domino’s CEO, Ritch Allison, the current rollout serves as a way to test the compatibility of the technology and ensure that it functions smoothly. While Domino’s will apply a slight premium to its menu when ordering through Uber Eats, the company is committed to maintaining competitive pricing compared to other pizza brands available on the delivery platform.

Domino’s believes that its expertise in marketing and social media will be a significant advantage once the partnership with Uber Eats is available throughout the United States. The company aims to leverage its proficiency to steer customers toward Domino’s when they use the Uber Eats platform for food delivery.

While the carryout channel continues to outperform delivery for Domino’s in the U.S., with 1.9% same-store sales growth in the last quarter, the company expects considerable growth in this channel for Q4. This is due to changes in its loyalty program that lower the spending thresholds for redemption, providing incentives for carryout customers to spend more.

To further boost delivery sales in Q4, Domino’s has introduced its “emergency pizza” promotion, a buy-one-get-one-later deal exclusively for U.S. loyalty program customers. In its efforts to enhance delivery sales, Domino’s has implemented various strategies in recent years, such as adding electric vehicles (EVs) to its delivery fleet and utilizing call centers to increase efficiency and free up in-store labor. While these efforts have contributed to recovering service times to pre-pandemic levels, Domino’s is now striving to boost delivery sales to strengthen its market position.

The national expansion of the Uber Eats partnership aligns with Domino’s ongoing commitment to provide customers with convenient and efficient delivery options in the ever-competitive food delivery market.

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