© Reuters. Domino’s Pizza (DPZ) jumps 10% on delivery agreement with Uber (UBER)
Domino’s Pizza (NYSE:) shares surged in pre-market Wednesday trading after the company announced an agreement with Uber (NYSE:) to allow U.S.-based customers to order its products via Uber Eats and Postmates apps.
The implementation will begin this fall in four pilot markets, before expanding across the country by the end of 2023.
“Our research in the U.S. and learnings from 13 of our international markets has shown us that taking orders using the Uber Eats Marketplace provides access for Domino’s and its franchisees to a new segment of customers and what we believe will be a meaningful amount of incremental delivery orders once it’s widely available,” said Domino’s CEO Russell Weiner.
Domino’s and Uber Eats currently have 27 international markets in common. Two companies said that this deal has the potential for incremental orders from Uber Eats to 70% of Domino’s stores around the world.
Uber’s CEO Dara Khosrowshahi added: “We’re excited to announce this unique partnership with Domino’s globally—both starting as their exclusive third-party marketplace partner in the U.S. and making their menu available to our consumer base around the world—and we look forward to bringing customers the convenience, technology, and experience that are foundational to both of our brands.”
Uber shares are up almost 2% on the news.
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