Domino’s Pizza will be terminating its exclusive delivery partnership with Uber Eats, opening the door for DoorDash to join the competition. Starting in May, Domino’s customers in the United States will be able to order through DoorDash, and Canadian customers can expect availability later this year. This transition is a significant move in Domino’s strategy since Uber Eats had been handling its delivery orders exclusively since 2023. This Uber Eats exclusivity agreement will officially expire on May 1, allowing DoorDash to utilize Domino’s drivers for deliveries.
The partnership with DoorDash introduces a new model where Domino’s own branded drivers deliver orders placed through DoorDash. The move leverages Domino’s experienced delivery workforce while expanding DoorDash’s coverage. The collaboration is projected to streamline delivery logistics and enhance consumer convenience as customers can more conveniently access Domino’s products.
Domino’s move to partner with DoorDash occurs in the wake of difficulties in its delivery sales performance. Although carryout sales have experienced growth, delivery sales have decreased year-over-year. Domino’s has tried several initiatives to counteract these difficulties, such as updates to its loyalty program and innovations such as Pinpoint Delivery, which enables customers to drop pins on a map for exact delivery points. Furthermore, the company is increasing its electric vehicle fleet to entice more drivers.
The move also reflects broader trends in the food delivery space, where aggregator platforms like Uber Eats and DoorDash dominate a multibillion-dollar market. Domino’s CEO Russell Weiner emphasized the importance of being in this marketplace, pointing to the fact that aggregator platforms offer scale and incremental sales opportunities. The DoorDash deal is in line with this vision while maintaining control over delivery execution through its own drivers.
This is a strategic step by DoorDash in increasing rivalry with Uber Eats as the two companies are vying for market dominance in food delivery. With DoorDash now partnering with Domino’s, the rivalry is set to reengineer the market dynamics of pizza delivery services in America, offering customers more convenience and choices.
