Domino's Strikes Deal With Uber
  • 9 months ago
Domino's Pizza has announced a deal with Uber Technologies to list its menus on Uber's food-delivery apps, Uber Eats, and Postmates. This move marks a significant shift in Domino's strategy as it previously avoided working with food-delivery companies—Domino's aims to generate $1 billion in new sales by leveraging Uber's apps. While the deal terms were not disclosed, Domino's CEO Russell Weiner mentioned that franchisees would benefit from the increased sales. The COVID-19 pandemic has accelerated the popularity of food delivery apps, and pizzerias, traditionally known for delivery, have seen a decline in direct sales. Market research indicates that third-party delivery apps accounted for 14% of pizza sales, amounting to $4.7 billion in 12 months. While Domino's shares struggled last year due to a shortage of delivery drivers, the company believes the partnership with Uber will help alleviate the labor pool issue for its franchisees. The menu integration will begin in the fall, starting with Las Vegas and three other U.S. markets, and is expected to expand nationwide by the end of the year.
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