Dive Brief:
- Domino’s will join DoorDash’s marketplace and has begun a pilot at select locations, the companies said in a Wednesday press release.
- A nationwide launch in the U.S. is planned to begin in May, with deployment in Canada expected later this year.
- Much like its Uber Eats partnership, Domino’s will use the marketplace to expand its customer reach, but will fulfill the delivery itself.
Dive Insight:
The partnership with DoorDash is part of Domino’s plan to reach $1 billion in sales on third-party delivery marketplaces, Joe Jordan, Domino’s chief operating officer and U.S. president said in a statement.
“The ability to connect seamlessly with DoorDash customers means more sales for Domino's stores, while efficiently leveraging our brand's robust delivery network,” Jordan said. “Tapping into incremental customers, particularly in suburban and rural markets, is a meaningful opportunity for Domino's, as our brand continues to open stores nationwide.”
Working with aggregators has already paid off for Domino’s — its once-exclusive partnership with Uber Eats led to a 3% sales mix last year. The chain began using Uber Eats in July 2023 and expanded the deal in October 2023 with a goal of reaching new users. Domino’s charges a slight premium across its entire menu on Uber’s platform.
Only customers using Domino’s apps and website have access to the pizza chain’s loyalty program. However, as part of the DoorDash deal, Domino’s orders will be available to DashPass subscription members. DashPass offers $0 delivery fees and reduced service fees on orders over $12.
Domino’s partnership with DoorDash could also help boost the chain’s delivery same-store sales, which continued to lag in the fourth quarter with a 1.4% decline compared to a 3.2% increase from carryout.
DoorDash has the largest market share of aggregators in the U.S., and has a total of 42 million active users. The platform has 22 million members across DashPass and Wolt+ (its European operation), but doesn’t break down its membership numbers for DashPass specifically.
DoorDash users can order from Domino’s on the aggregator’s app and track their orders with integrated GPS tracking to monitor the delivery progress, the press release said.
