Domino’s is about to go on a driver hiring spree as it gears up for its partnership with Uber Eats

Domino's is looking to hire more delivery workers as it rolls out its partnership with Uber Eats.

Domino’s Pizza, a leading player in the pizza delivery business, is making a bold move to revamp its operations by partnering with Uber Eats. The recent collaboration with Uber Eats has presented a massive $1 billion opportunity for the chain, and executives are optimistic about the potential it holds for their business.

During an earnings call on Monday, Domino’s CEO Russell Weiner acknowledged the challenges they face in recruiting sufficient delivery drivers to meet the expected surge in orders through the Uber Eats partnership. Unlike other restaurants that rely on Uber’s delivery fleet, Domino’s plans to utilize its own drivers for delivering orders to customers.

“We do not currently have the number of delivery drivers we will need for this incremental volume,” Weiner said during the earnings call.

To address the driver shortage, Domino’s is taking measures such as implementing changes to its training programs and introducing company cars, including electric vehicles, at some locations. This move is aimed at providing delivery options to employees who may not have personal vehicles.

“Do I expect to need incremental drivers? Yes,” Weiner stated. “And yes, I expect to be able to get them.”

The partnership with Uber Eats comes at a crucial time for Domino’s and its competitors, who have been grappling with declining demand for delivery services in the United States. During the second quarter that ended on June 18, Domino’s reported a 3.5% drop in delivery for same-store sales. The company also warned that this downward trend might persist into the third quarter.

However, CFO Sandeep Reddy remains optimistic that the Uber Eats collaboration will reverse the sluggish sales by 2024.

For years, Domino’s resisted teaming up with aggregators or delivery apps, but a change in leadership brought about a shift in strategy. In mid-July, the pizza chain announced its plan to join forces with Uber Eats. Under this agreement, Domino’s will be featured on the Uber Eats platform, but the pizza deliveries will be carried out by their own drivers.

Domino’s CEO, Weiner, believes that the partnership with Uber Eats will attract new customers, similar to the positive impact it has had on the company’s international segment, where such collaborations have become a lucrative $1 billion business.

“We believe these transactions will be incremental and provide a meaningful increase in a number of customers who leverage the Domino’s delivery experience,” Weiner assured investors. “This has also been supported by what we’ve learned from our Domino’s Pizza international master franchisees, who have already developed a $1 billion business, taking orders from aggregators.”

Additionally, Weiner highlighted a significant advantage of this deal, as Domino’s will secure “control of our customer data.” This aspect sets them apart from many other aggregators who do not share consumer data with restaurants.

As Domino’s Pizza navigates its way through this transformative partnership, the company remains committed to overcoming the driver shortage and leveraging the growing demand for food delivery services in the US market. The collaboration with Uber Eats holds the potential to bring about substantial growth for the renowned pizza chain and enhance its position in the food delivery industry.

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