Domino’s, the world’s largest pizza company, has announced a partnership with Uber Eats and Postmates, allowing U.S. customers to order its products through these third-party delivery platforms. This move comes after years of holding out while competitors like Papa John’s and Pizza Hut embraced third-party delivery services.
The agreement makes Uber Eats the exclusive third-party platform for Domino’s in the U.S. until at least 2024. The initial rollout will begin in four pilot markets, with nationwide availability expected by the end of 2023. Customers will be able to track their orders using the Domino’s Tracker or the Uber Eats app.
Russell Weiner, CEO of Domino’s, highlighted the company’s success in the delivery and carryout pizza marketplaces, as well as its digital platform. He stated, “Now that aggregators are at scale, the next logical marketplace for us to enter is order aggregation.” The decision to partner with Uber Eats is based on research and learnings from Domino’s international markets, where the company has utilized Uber Eats in many countries.
While the specific terms of the contract remain undisclosed, industry analysts anticipate that it is one of the largest and most complex delivery contracts to date. Domino’s, given its size, likely negotiated a favorable commission rate and a unique data-sharing agreement. Analyst David Palmer of Evercore ISI predicts significant benefits for Domino’s, including increased same-store sales growth and expansion to other delivery platforms like DoorDash in 2024.
The partnership with Uber Eats also presents an opportunity for Domino’s to unify its international markets under a single master agreement. This could result in incremental orders from Uber Eats for up to 70% of Domino’s stores worldwide.
By joining forces with Uber Eats, Domino’s gains access to a global platform and the potential to reach millions of new customers. While Uber Eats will handle the delivery logistics, Domino’s will continue to maintain its brand presence at customers’ doorsteps. The company’s own e-commerce platform will remain the go-to destination for deals and its industry-leading loyalty program.
Dara Khosrowshahi, CEO of Uber, expressed excitement about the unique partnership and the convenience and technology that both brands can offer customers. Domino’s will also explore transitioning its international markets that currently do not partner with Uber Eats to this new global agreement.
The collaboration between Domino’s and Uber Eats signifies the ongoing efforts by pizza chains to embrace third-party delivery services and leverage technology and innovation to reach a broader customer base. With the convenience and reach of these platforms, customers can expect greater accessibility to Domino’s products, while the company aims to enhance delivery efficiency and drive sales.
