DoorDash gets Domino’s
This announcement has me nostalgic for the days of competitive exclusivity.
Domino’s is leaning harder into third-party delivery. The pizza chain that famously held off the large delivery apps for years has capitulated and will soon add DoorDash to its list of third-party partners.
This is a foregone conclusion as more consumers shift attention and ordering dollars to delivery apps. Not quite two years ago, Domino’s signed a big-deal exclusive contract with Uber Eats, originally slated to run through 2024. In February, Domino’s CEO Russel Weiner said the contract had been extended through May 1, but that he’d start negotiations with “additional aggregator partners.”
He clearly meant DoorDash, and foreshadowed today’s announcement:
“In 2025, we know that aggregators are a meaningful sales-driving opportunity for us, and we have yet to join the largest aggregator platform in the US,” he said at the time.
Also in February, Weiner explained his view of success in an uncertain economy. The company’s target? Growth in market share.
“In these challenging times,” he said, “the best measure of a company's success will be the market share gains it achieves.”
Thought it’s made some concessions, the legacy pizza delivery operation is holding on to some control; all delivery orders, including those placed on Uber or DoorDash, are delivered by uniformed Domino’s drivers. DoorDash’s DashPass subscribers get free delivery, but only diners ordering directly with Domino’s get access to its loyalty and rewards program.
DoorDash and Uber are currently squabbling through a lawsuit related to their respective direct delivery platforms, a fight that recalls earlier days of delivery drama. It’s rare that delivery or restaurant companies issue embargoed press releases unless the deal is big; Domino’s is clearly leaning on third-party growth to drive future orders, and DoorDash is probably thrilled it broke through an exclusive deal with its biggest competitor.
In 2024, Domino’s Uber partnership accounted for 3 percent of US sales.
What else?
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