Domino’s Pizza shares rose 10% on Wednesday after the pizzeria chain said customers could start using the Uber Eats and Postmates apps for orders because it tries to shake up its sluggish delivery business.
Domino’s said Uber Eats can be its exclusive third-party platform in the USA until at the very least 2024, based on a “global deal” with the ride-sharing company.
The pizza maker, which saw its delivery industry slow in April, said the partnership will begin in 4 US pilot markets in the autumn.
Ordering on Uber’s delivery apps is predicted to be available nationwide by the top of 2023, with Domino and its franchisees handling deliveries, the corporate said.
“Adding Domino’s to Uber’s US market will expand the reach of the pizza brand to latest customers,” said Jim Sanderson, an analyst at Northcoast Research.
The corporate is raising prices on menu items and increasing delivery charges because it looks to guard margins from high input costs after consumers turned to home-cooked meals in the course of the sticky cost-of-living crisis.
![Pizza from Pizzeria Domino`s](https://nypost.com/wp-content/uploads/sites/2/2023/07/NYPICHPDPICT000008285233.jpg?w=1024)
In April, Domino’s said its same-store sales were down 2.1% in the primary quarter compared with a 12 months ago.
It’s on account of publish its second-quarter results on July 24.
“The partnership is more likely to boost Domino’s domestic delivery sales and improve franchisees’ economics,” said BTIG analyst Peter Saleh, adding that the advantages would only begin to materialize within the fourth quarter.
![Uber Eats logo](https://nypost.com/wp-content/uploads/sites/2/2023/07/NYPICHPDPICT000009119405.jpg?w=1024)
Domino’s said it plans to modify to delivering through Uber Eats this 12 months in 27 international markets, including the UK, Canada and Australia, that are shared by each firms.
The deal will potentially allow Uber to amass additional stakes from the virtual duopoly it has with DoorDash within the US over the subsequent few quarters, said Angelo Zino of CFRA Research.