Domino's Partners with DoorDash to Boost Sales, Expand Reach

Domino's Pizza has announced a strategic partnership with doordash, a leading food delivery service, to expand its customer base and attract new patrons. Under this collaboration, domino's delivery drivers, easily recognizable in their signature uniforms, will deliver pizzas ordered through the DoorDash app. This initiative aims to tap into a new customer segment that frequently uses the DoorDash platform for their food orders.

The terms of the partnership have not been disclosed by either company. However, Domino's CEO, Ritch Allison, emphasized the potential of this collaboration in a prepared statement. He noted that the company anticipates attracting a significant number of new customers, particularly in rural and suburban areas. Allison described third-party delivery platforms as a "10 billion dollar opportunity" for the pizza giant.

This partnership represents a shift in Domino's strategy. Previously, the company had resisted using third-party delivery apps, preferring to handle orders through its own system. However, in 2023, Domino's announced a collaboration with Uber Eats, indicating a change in their approach. In February, the company reported that approximately 2.7% of its orders were fulfilled through Uber Eats.

Ask Aime: How will Domino's partnership with DoorDash impact its market share and customer base?

The new partnership with DoorDash is already underway in select stores and is set to roll out nationwide in the United States by May of this year, with plans to expand to Canada later in the year. Domino's operates over 7,000 stores in the United States, with the majority being franchised, and has a global presence with over 21,300 stores worldwide.

The move to partner with DoorDash comes at a time when Domino's is facing challenges in the fast-food industry. In February, the company reported that its same-store sales for the first quarter did not meet expectations. Company executives had previously indicated that the industry would continue to face pressures this year.

Investors have long hoped for a partnership between Domino's and DoorDash, with some analysts suggesting that such a collaboration could broaden Domino's customer base. The addition of DoorDash to Domino's delivery options is expected to provide customers with more flexibility and convenience, potentially driving increased sales and customer satisfaction.