It’s commonly known that Domino’s has a unique app that enables you to choose, personalize, and track your pickup or delivery orders from the franchise. Prior to July 12, Domino’s restricted customers to using just the chain’s app and avoided third-party delivery services like Uber Eats and Postmates. However, that will now change. According to a press statement, the pizza restaurant is launching a new relationship with both of the aforementioned platforms. Customers in the United States should be able to use it by this autumn in some places.
Customers will have access to menu items
Domino’s CEO Russell Weiner said that requests from customers to place pizza orders through food delivery services they already use, including Uber Eats, led to the new collaboration. Given that some customers will only use the Uber Eats app to order deliveries, this agreement might open up Domino’s to millions of new customers worldwide, according to Weiner. Customers will have access to menu items from their nearby Domino’s shop once it is accessible on Uber Eats.
While several major national pizza shops, like Papa John’s, Pizza Hut, and Little Caesars, already accept orders through Uber Eats, Domino’s is infamous for standing by its principles despite the popularity of food delivery apps. To combat the hidden surcharges on other delivery apps, the restaurant actually declared in 2021 that it would be giving away “Surprise Frees,” or more than 5 million free menu items. Weiner remarked at the time, “Unlike many third-party meal delivery apps, Domino’s offers customers one clear delivery price because we know what customers expect and deserve.
However, the chain is now reaping the rewards of working with Postmates and Uber Eats. According to the press release, the adjustment won’t just increase the company’s customer base; it will also give it more insight into the ideal delivery metrics. Additionally, the new arrangement might expand Uber Eats orders to 70% of Domino’s locations worldwide and bring in $1 billion in revenue.
Domino’s to use Uber eats for food orders, shares surge
Refused to use third-party delivery services
Many of the chain’s branding elements will still be kept, including the delivery personnel’s Domino’s outfits and the original app’s promotions and loyalty program. Given that Domino’s shares rose more than 10% after the alliance was announced, it appears that the new arrangement is off to a good start.
In the US, Domino’s Pizza has long refused to use third-party delivery services. But now, the pizza franchise has a relationship with one of the biggest meal delivery businesses in the world.
With the launch of cooperation between Uber Eats and Postmates, which was announced on Monday, customers will soon be able to purchase Domino’s entire menu on both services.
It’s a significant shift for the largest pizza restaurant in the world, which had previously demanded that consumers place their orders directly with them. The chain was so against delivery apps that it even conducted a PR prank exposing the applications’ delivery costs.
In early trade, Domino’s (DMPZF) stock rose more than 10% in response to the announcement.
