Domino's to allow food orders through Uber's delivery apps
July 12 (Reuters) - Domino's Pizza (DPZ.N) customers can order its products through Uber's (UBER.N) Uber Eats and Postmates apps, the pizza chain said on Wednesday, in a bid to boost sales amid a slowing delivery business.
Domino's shares were up 12% in premarket trading, while Uber was up 2% after the former said Uber Eats will be the exclusive third-party platform in the U.S. until at least 2024, as per its "global agreement" with the ride-share company.
The pizza maker, which had flagged sluggishness in the delivery business in April, said the partnership would begin in four pilot markets in the fall in the U.S.
Ordering on Uber's delivery apps is expected to be enabled across the country by the end of 2023, with Domino's and its franchisees handling the delivery, the company said.
The world's largest pizza chain has been raising prices on menu items and increasing delivery charges in a bid to shield margins from high input costs as a sticky cost of living crisis turned consumers towards cooking meals at home.
Domino's added that it will look to transition to deliveries through Uber Eats in 27 international markets this year, including in the United Kingdom, Canada and Australia which are common between the two companies.
Reporting by Granth Vanaik and Juveria Tabassum in Bengaluru; Editing by Janane Venkatraman
Our Standards: The Thomson Reuters Trust Principles.
Source: Reuters
