Domino’s, the world’s largest pizza company in terms of sales and stores, has entered an agreement with Uber to list its menu on Uber Eats and Postmates. The deal indicates that Domino’s is reversing its stance against working with third-party delivery companies in the U.S. Shares of Domino’s soared more than 10% on the news in early trading.
The initial rollout will begin this fall in four pilot markets, with ordering on the Uber Eats and Postmates apps expected to be available across the country by the end of the year. The Wall Street Journal reports that Domino’s is listing its menu on Uber Eats and Postmates in 28 of its markets, including Canada.
Orders placed on the Uber Eats platform will be delivered by uniformed Domino’s drivers. After placing an order, customers will be able to track their order using Domino’s Tracker or through the Uber Eats app.
The deal comes as Domino’s competitors, including Pizza Hut and Papa John’s, have already been working with third-party delivery apps in the U.S. since 2019.
“Our research in the U.S. and learnings from 13 of our international markets has shown us that taking orders using the Uber Eats Marketplace provides access for Domino’s and its franchisees to a new segment of customers and what we believe will be a meaningful amount of incremental delivery orders once it’s widely available,” said Domino’s CEO Russell Weiner in a statement.
Weiner told the Wall Street Journal that the chain and its operators aim to generate a billion dollars in new sales by listing its menus on Uber’s apps. He also stated that franchisees will profit from those new sales.
“We’re excited to announce this unique partnership with Domino’s globally—both starting as their exclusive third-party marketplace partner in the U.S. 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.
Domino’s says Uber Eats will be its exclusive third-party platform in the U.S. until at least 2024, which indicates that Domino’s could potentially make its menu available on other food delivery apps, like DoorDash and Grubhub.