Domino’s Pizza Strikes Deal With Uber in Search for New Sales

livemint.com:

Domino’s Pizza, hungry to claw back pizza sales now rung up on mobile apps, is reversing its long-held stance against working with food-delivery companies in the U.S. The world’s largest pizza company by sales and stores to announce Wednesday that it has signed a deal with Uber Technologies to list its menus on the ride-share company’s Eats and Postmates food-delivery apps across 28 of the pizza chain’s markets, including the U.S., U.K. and Canada, the companies said.

Domino’s Chief Executive Russell Weiner said in an interview that the chain and its operators, which will still deliver the pizzas, aim to generate a billion dollars in new sales by listing its menus on Uber’s apps. Weiner declined to discuss the commissions Uber will charge or other terms of the deal, but said franchisees will profit from those new sales. Apps benefited from pandemic-related lockdowns in ways that aren’t reversing as consumers continue to seek delivery of all types of restaurant food.

Pizzerias, which have offered delivery for decades, have lost direct sales as a result, according to restaurant executives and analysts. Uber, DoorDash and other third-party apps accounted for 14% of pizza sales in the 12 months ended May 28, up from 4% before the pandemic, according to market-research firm Circana. Those delivery sales rose to $4.7 billion for the period, Circana said.

Domino’s rivals Papa John’s International and Pizza Hut struck deals with food-delivery providers beginning around 2019 to broaden their reach with consumers. Those companies have said that working with apps have helped them secure enough drivers on hand during peak hours. Domino’s executives said that the pandemic turned many more people on to ordering food through apps and