Jul 12, 2023 - Economy

Domino's Pizza ends resistance to third-party apps, agrees to sell food through Uber Eats

A Domino's Pizza location. Photo: Paul Weaver/SOPA Images/LightRocket via Getty Images

Domino's Pizza reached a deal to list its food on Uber Eats and Postmates for the first time in the U.S.

Why it matters: The chain had resisted third-party food delivery apps in the U.S. until now, choosing to handle all of its orders through its own app and restaurants.

Driving the news: Domino's made the announcement Wednesday, describing the deal as an exclusive third-party app partnership with Uber Eats and Uber-owned Postmates.

  • Domino's workers will still handle the actual delivery of their products when people order through the apps.
  • It'll start in the fall in four pilot markets and is expected to roll out to the rest of the country by the end of the year.
  • The deal is exclusive "until at least 2024," Domino's said in a statement.

The impact: Domino's stock soared over 16% at Wednesday's open.

Be smart: Domino's Pizza, which has more than 19,500 locations worldwide, warned in February that its delivery business was shrinking, even as third-party apps DoorDash and Uber reported sales growth.

  • Domino's chief financial officer Sandeep Reddy said at a conference in June that the company would embrace third-party delivery if it was convinced that "the incrementality of the opportunities is greater than the risk" that the brand would lose business to competitors also listed on those external platforms.

What's next: Domino's, which was already partnering with Uber Eats in 27 international markets, will expand its global relationship to up to two-thirds of its locations worldwide.

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