Domino’s Pizza (NYSE:DPZ) shares popped Wednesday after Domino’s announced U.S. consumers can now order its products through Uber’s (NYSE:UBER) Uber Eats and Postmates apps. The agreement has the potential to add incremental orders from Uber Eats to 70% of Domino’s stores, the company said.
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 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.
DPZ shares rose $37.23, or 10.6%, to $387.03, while those for UBER gained 19 cents to $44.52.