Domino’s, the world’s largest pizza company in terms of sales and stores, has signed a deal with Uber to list its menus on its Uber Eats and Postmates delivery apps in the US, the company has announced. Although orders will continue to be delivered by uniformed Domino’s drivers, the company hopes that listing its menus on the apps will expose it to more potential customers.
The pizza chain has been a notable holdout in the shift toward third-party delivery apps in the US, which The Wall Street Journal previously reported can increase sales but harm profit margins and interrupt the direct relationship between restaurant and customer. Fellow pizza brands Papa John’s and Pizza Hut already work with third-party delivery apps in the US. One Wisconsin-based pizza chain told the Journal that the absence of Domino’s from apps had actually helped drive business toward other chains.
“We can bring them a large number of new customers”
The rollout is expected to begin this autumn in four US pilot markets, including Las Vegas, the Journal reports, and should be available nationwide by the end of the year. The agreement also applies internationally, where Domino’s notes the two companies have 27 international markets in common, covering 70 percent (roughly 14,000) of its global stores. Domino’s already lists its pizzas on delivery apps in some international markets like the UK, where it announced a trial with Just Eat last May.
“Domino’s will still be the face our customers see at the door, while Uber will be providing us with adequate data to understand delivery efficiency and incrementality,” said Domino’s CEO Russell Weiner in a statement, adding that the company will continue to operate its own platform with “our best deals and industry-leading loyalty program.”
“We’re excited to announce this unique partnership with Domino’s globally — both starting as their exclusive third-party marketplace partner in the US and making their menu available to our consumer base around the world — and we look forward to bringing customers the convenience, technology, and experience that are foundational to both of our brands,” said Uber CEO Dara Khosrowshahi in a statement.
The covid pandemic is cited as being behind a huge growth in the popularity of food delivery apps, whose sales continue to grow even as direct orders to restaurants plateau. Market research firm Circana estimates that around 14 percent of pizza sales were made through third-party apps in the 12 months ending May 28th, the Journal notes, up from 4 percent prior to the pandemic. “We can bring them a large number of new customers who are either not ordering from them as frequently or who don’t have Domino’s as top of mind,” Uber’s head of delivery for the Americas, Sarfraz Maredia, told the Journal.
Correction July 12th, 10:55AM ET: This article originally stated that Domino’s has previously partnered with Uber Eats in the UK. This is incorrect. It’s actually partnered with Just Eat in the UK.