By Evie Liu
Domino's Pizza will add the DoorDash app for delivery orders nationwide starting in May and plans to expand the service to Canada later this year, the company said on Wednesday.
DoorDash orders will be delivered by Domino's drivers, the company said. A pilot program is already under way. Domino's didn't specify which cities are in the program, but has about 7,000 locations in the U.S. The company also uses the Uber Eats app.
"The ability to connect seamlessly with DoorDash customers means more sales for Domino's stores, while efficiently leveraging our brand's robust delivery network," said Joe Jordan, Domino's chief operating officer and U.S. market president, in a statement.
In midday trading, shares of Domino's were up 0.2% and DoorDash was ahead 3.9%. Domino's is down 6.7% over the past 12 months, while the S&P 500 has gained 8.2%.
The partnership could help Domino's bring in more customers. It, like other restaurant chains, has been hit by weaker consumer spending. In last year's fourth quarter, same-store sales for its U.S. company-owned locations declined 0.7% from the year before.
As more diners choose delivery, third-party aggregators have become an important channel. Domino's and Uber Eats have had an agreement for over a year now. Uber Eats now accounts for 3% of Domino's sales, which totaled more than $19 billion in 2024.
In February, CEO Russ Weiner told analysts that the company had started talks with additional aggregator partners. He said aggregators are "a meaningful sales-driving opportunity" and expects them to help Domino's generate $1 billion in incremental sales.
Domino's is late to the game of delivery aggregators. Papa Johns started using aggregators before the pandemic. In 2024's first quarter, about 16% of its sales came from the channel.
Write to Evie Liu at evie.liu@barrons.com
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April 02, 2025 13:25 ET (17:25 GMT)
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