Shake Shack (NYSE:SHAK) is continuing to invest in its digital business after a major shift in consumer habits during the COVID pandemic, launching its own nationwide in-app delivery service as part of an exclusive partnership with Uber Eats.
The move expands on its Shack Track service, which allows guests to preorder food for pickup at its walk-up windows, by the curbside or on in-store shelves. The nationwide launch follows tests done in Miami and New York.
Customers who order in Shake Shack’s app will be able to track their order in real time and will pay either a 99-cent flat delivery fee or receive free delivery for orders over $35 — competitive pricing in a part of the industry known for high fees.
“We found that they could do this incredibly well through this year, especially in the places where we’re strongest,” CEO Randy Garutti said of its decision to partner with Uber Eats.
Shake Shack is testing a 5% upcharge on third-party delivery, which will make in-app ordering the best value for customers.
Through the end of this month, it is offering free fries with orders of more than $15 placed on the Shack App.
Shake Shack’s digital sales have surged over the past year, and made up nearly 60% of its total sales in the fourth quarter. Through the third week of February, year-to-date sales through its app and website were up more than 300% compared with the prior year.
SHAK shares lost $1.63, or 1.3%, to $121.11.