2023-07-12 07:40:16 ET
Domino's Pizza Inc. ( NYSE: DPZ ) jumped in early trading on Wednesday after the company entered into a new global agreement with Uber Technologies ( NYSE: UBER ).
The agreement allows U.S. customers to order Domino's products through the Uber Eats and Postmates apps with delivery via drivers from Domino's ( DPZ ) and its franchisees. The initial U.S. rollout of the agreement will begin in the fall in four pilot markets, with ordering on the Uber Eats and Postmates apps anticipated to be enabled across the country by the end of 2023.
Customers in the U.S. using the Uber Eats platform will be able to order delivery from their local Domino's store menu. Uber Eats will be the exclusive third-party platform for Domino's in the U.S. until at least 2024. Customers will be able to track their order using Domino's Tracker or through the Uber Eats app. Orders placed on the Uber Eats platform will be delivered by uniformed Domino's drivers. Uber One and Postmates Unlimited members will receive delivery with no charge on their Domino's orders within the Uber Eats and Postmates platforms.
"Domino's has a history of successfully entering new marketplaces," noted CEO Russell Weiner. He said the next logical marketplace for the pizza chain to enter is order aggregation.
"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."
The agreement is expected to create the opportunity to unify Domino's ( DPZ ) international markets under a single master agreement that leverages the global scale of both brands. Domino's ( DPZ ) and Uber Eats currently have 27 international markets in common. The agreement is noted to have the potential for incremental orders from Uber Eats to 70% of Domino's stores around the world, including the U.S.
Shares of Domino's Pizza ( DPZ ) rose 10.07% in premarket trading to $385.900 vs. the 52-week trading range of $285.84 to $426.44. The restaurant stock is up 14% over the last six weeks. Meanwhile, Uber ( UBER ) rose 1.15% in the early session.
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Domino's Pizza soars after striking global delivery deal with Uber Technologies