April 2 (Reuters) - A new partnership between Domino's
and DoorDash ( DASH ) means that uniformed Domino's drivers will deliver
pizzas ordered through the DoorDash ( DASH ) app, the pizza company said
Wednesday.
Neither company disclosed the terms of the tie-up.
Being listed on the DoorDash ( DASH ) app means it will be easier for
Domino's to reach new customers accustomed to ordering through
the DoorDash ( DASH ) 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 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 ( DASH ),
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.