Domino's Collaborates with Uber
Shares of Domino’s Pizza (NYSE: DPZ) witnessed a strong surge in pre-market trading on Wednesday. This follows the pizza giant's announcement of a significant partnership with Uber (NYSE: UBER). As part of the agreement, customers across the U.S. will now be able to order Domino’s products through the Uber Eats and Postmates apps.
Pilot Phase and Nationwide Rollout
The integration of Domino’s products into the Uber Eats and Postmates platforms will initially be introduced in four pilot markets. Following a successful trial plans to expand the service across the nation are scheduled by the end of 2023.
A New Segment of Customers for Domino's
Domino's CEO, Russell Weiner, highlighted the potential of this new agreement. Weiner stated that their research in the U.S. and experiences from 13 international markets suggest that the Uber Eats Marketplace offers access to a new customer segment for Domino's and its franchisees. The company expects to see a meaningful surge in delivery orders once the service becomes widely available.
Mutual Benefit: Domino's and Uber Eats
Domino's and Uber Eats already share 27 international markets. Both companies project the potential for this deal to generate incremental orders from Uber Eats to about 70% of Domino's stores globally.
Uber's Enthusiasm for the Partnership
Uber's CEO, Dara Khosrowshahi, expressed his enthusiasm about this unique global partnership with Domino's. Khosrowshahi stated that Uber is looking forward to delivering the convenience, technology, and experience that both brands are renowned for, to consumers worldwide. News of the partnership had an immediate impact on Uber's shares, causing them to rise by almost 2%.