/cdn.vox-cdn.com/uploads/chorus_asset/file/24784024/Dominos_Uber_Eats_Image_on_Mobile.jpg "Domino’s, an app holdout, finally joins Uber Eats to list its pizzas in the US")
Domino’s, the world’s largest pizza company in terms of sales and stores, has announced a deal with Uber to list its menus on the Uber Eats and Postmates delivery apps in the US. While Domino’s own drivers will continue to deliver the orders, the company hopes that partnering with these apps will expose it to a wider customer base.
Previously, Domino’s had resisted joining third-party delivery apps in the US due to concerns that it could increase sales but harm profit margins and disrupt the direct relationship between the restaurant and customers. In contrast, competitors like Papa John’s and Pizza Hut have already embraced these apps. Additionally, executives at another pizza chain, Toppers Pizza, have noted that Domino’s absence from these apps has actually driven business their way.
“We can bring them a large number of new customers,” said Uber’s head of delivery for the Americas, Sarfraz Maredia.
The rollout of Domino’s menus on the Uber Eats and Postmates apps is scheduled to begin this autumn in four US pilot markets, including Las Vegas, and should be available nationwide by the end of the year. This partnership also extends internationally, with Domino’s and Uber sharing 27 international markets, which represent roughly 70 percent of Domino’s global stores. It is worth mentioning that Domino’s already lists its pizzas on Uber Eats in some international markets, such as the UK.
Domino’s CEO Russell Weiner emphasized that despite the partnership, Domino’s will still maintain its own platform with exclusive deals and a leading loyalty program. The agreement includes a one-year exclusivity period for Uber as Domino’s third-party marketplace partner.
“We’re excited to announce this unique partnership with Domino’s globally,” said Uber CEO Dara Khosrowshahi. “We look forward to bringing customers the convenience, technology, and experience that are foundational to both of our brands.”
The COVID-19 pandemic has significantly increased the popularity of food delivery apps, with their sales continuing to rise even as direct orders to restaurants level off. Approximately 14 percent of pizza sales were made through third-party apps in the 12 months leading up to May 28th, according to market research firm Circana. This is a notable increase from the 4 percent prior to the pandemic.
In summary, Domino’s partnership with Uber and its inclusion on the Uber Eats and Postmates apps aims to tap into the growing trend of food delivery app usage and attract new customers. While the direct relationship between Domino’s and its customers remains intact, the company recognizes the value of leveraging these platforms for increased exposure and convenience.
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