Shares of Uber (UBER), which runs the Uber Eats food delivery service, are trading lower after McDonald’s (MCD) announced it was expanding its McDelivery food delivery relationship with DoorDash, an Uber Eats competitor. WHAT’S NOTABLE: Back in July, McDonald’s started testing using DoorDash in Houston, Texas, which ended Uber Eats exclusive food delivery partnership with the fast food giant. When McDonald’s reported its earnings in July, CEO Stephen Easterbrook had noted, “We will quickly scale with DoorDash across the U.S. to provide customers with a choice of delivery partners.” DOORDASH SCALE-UP: Earlier today, Restaurant Business Online reported that McDonald’s was “taking its relationship with DoorDash to a new level” by adding delivery through DoorDash to markets across the U.S. following the Houston test. The report noted that most restaurants will use both Uber Eats and DoorDash. Currently, food delivery is available from about 10,000 McDonald’s restaurants. PRICE ACTION: In afternoon trading, shares of Uber are lower by about 1.2% to 32.70.
previous post