Domino’s Pizza (DPZ) shares saw a significant rise after the pizza chain announced a global agreement with Uber that will enable U.S. customers to order their products through both Uber Eats and Postmates apps.
While delivery responsibilities will remain with Domino’s Pizza, the initial rollout of the partnership is scheduled to begin in the fall in four pilot markets in the United States. By the end of the year, it is expected to expand nationwide.
The news of the agreement caused Domino’s (DPZ) shares to surge by nearly 12% in premarket trading, while Uber Technologies (UBER) witnessed a gain of 0.7%.
According to Chief Executive Officer Russell Weiner, this partnership has the potential to introduce Domino’s to millions of new customers worldwide who rely solely on the Uber Eats app for their delivery needs. Weiner also revealed in an interview with The Wall Street Journal that the company’s goal, through this collaboration, is to achieve a billion dollars in new sales by featuring their menus on Uber’s apps.
In terms of the partnership, Domino’s will still maintain direct customer interaction during the delivery process, while Uber will provide valuable data that will further enhance understanding of delivery efficiency and incrementality.