New York (CNN) � has long been a holdout of using third-party delivery apps in the United States. But now, the pizza chain has struck a deal with one of the world’s largest food delivery services.
Customers can soon order Domino’s full menu on Uber Eats and , with a partnership announced Monday that is scheduled to roll out nationwide by the end of the year.
It’s a major change for the world’s biggest pizza company, which had previously required customers to order directly from them � and was so anti-delivery-app that the chain even ran a PR stunt highlighting the apps� delivery fees.
Shares of Domino’s soared more than 10% on the news in early trading.
“Now that aggregators are at scale, the next logical marketplace for us to enter is order aggregation,� said Domino’s CEO Russell Weiner in a statement, adding that partnering with Uber Eats and Postmates “will be a meaningful amount of incremental delivery orders once it’s widely available.�
It’s a sharp reversal from Weiner’s stance last year, when he said Domino’s avoided using these services because they charge a commission fee and wouldn’t solve its labor issues.
And in 2021 Domino’s even gave away $50 million in free food to counter the “surprise fees� from delivery apps. “Other food delivery apps charge customers with hidden city or service fees,� the said at the time. “Not Domino’s. We charge customers one straightforward delivery fee because we believe that level of transparency is what customers want and deserve.�
Specific financial details of the Uber Eats deal, including how much of a fee Uber is taking, weren’t disclosed. However, Domino’s employees will still deliver the pizza rather than Uber Eats drivers, Weiner said.
The partnership could add $1 billion in new sales, he
for Domino’s in previous years because of a confluence of factors including including labor issues, fees and customers increasingly using third-party apps.
In its most recent earnings call in April, for example, Domino’s CFO Sandeep Reddy said “delivery business remains more pressured� with its first quarter same-store deliveries declining by 2% compared to the same quarter a year earlier.
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