​Expansion on the Menu: Domino's to Trial Uber Eats Service

​Expansion on the Menu: Domino's to Trial Uber Eats Service

Posted by Emily on 9th Nov 2023

Domino's Pizza Group is set to experiment with a new collaboration with the delivery service Uber Eats in the upcoming year to bolster its expansion efforts.

Commerce August 2015 24 (Domino's) Michael Barera, CC BY-SA 4.0, via Wikimedia Commons

This well-known pizza franchise, which runs 1,304 locations across the UK and Ireland, has historically hesitated to embrace third-party delivery platforms. Only last year did they commence a partnership with Just Eat in the UK, a move that has successfully extended their customer reach and enhanced sales figures. This success has spurred the decision to initiate a pilot with Uber Eats at selected stores in the UK and Ireland starting in early 2024.

In the latest quarterly financial report, Domino's has shared plans to inaugurate a minimum of 60 new stores in the region for 2023, an increase from the 35 opened this past year. The new outlets are already performing beyond initial projections, and the company has over 45 locations lined up for development in 2024.

The company has also been promoting its proprietary app, which has encouraged higher spending and more frequent customer orders. The app has seen substantial user growth, with 8.7 million active users in the third quarter, a 55% increase from last year.

The third-quarter financials show a 3.7% increase in like-for-like system sales, reaching £363.7m, anticipating the full-year underlying earnings to fall between £132m and £138m.

As of August, Andrew Rennie, the newly appointed CEO, commented on the company's strategic advancements, focusing on sustainable growth. Looking ahead to the following year, Rennie highlights the plan to concentrate on customer and order growth and to improve profitability for franchisees.

Domino's Pizza Group is the principal franchise holder, with the rights to own, operate, and franchise Domino's stores in the UK and the Republic of Ireland.

We're keen to hear your thoughts on this new venture. How do you think the partnership with Uber Eats will impact Domino's growth? Drop your comments below and join the discussion.

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