By Waylon Cunningham
(Reuters) - A new partnership between Domino’s and DoorDash (NASDAQ:DASH) means that uniformed Domino’s drivers will deliver pizzas ordered through the DoorDash app, the pizza company said Wednesday.
Neither company disclosed the terms of the tie-up.
Being listed on the DoorDash app means it will be easier for Domino’s to reach new customers accustomed to ordering through the DoorDash app, and Chief Executive Officer Joe Jordan said in a prepared statement the company expects to gain new customers particularly in rural and suburban areas. Jordan said third-party delivery platforms are a "$1 billion opportunity" for the pizza company.
In February, Domino’s reported first-quarter same-store sales that missed estimates. Executives at the time said the consumer environment for fast food would remain pressured this year.
Domino’s had until recently been a holdout against third-party delivery apps, preferring to take orders exclusively in its own systems, but that changed in 2023 when the company announced a partnership with Uber (NYSE:UBER) Eats. Around 2.7% of Domino’s orders were made through Uber Eats in the last quarter, the company reported in February.
Some investors have been hoping for a deal with DoorDash, which RBC analyst Reich Logan said in February could grow the customer base.
Currently, customers can only order pizza delivery through Domino’s or through an order on Uber Eats, another delivery service.
The program, already active in some stores, will be launched nationwide in the U.S. in May, and will be extended to Canada later in the year, the company said.
Domino’s has more than 7,000 stores in the U.S., mostly run by franchisees, as well as 21,300 stores globally.