McDonald’s announced that it will be ending its exclusive partnership with UberEats and enter into a new arrangement with new delivery partner DoorDash.
UberEats was McDonald’s sole US delivery provider ever since 2017. They brought deliveries to approximately 67% of McDonald’s store within the United States. Thanks to this, the delivery for McDonald’s has grown into a $3 billion business. Even so, the US head of McDonald’s, Chris Kempczinski, said that deliveries only make up a 2-3% of McDonald’s business.
Even before Uber’s underwhelming initial public offering, McDonald’s have been looking for ways to end their partnership, as well as lower delivery commission fees. Every time an order is placed on UberEats’ platform, restaurants have to pay an extra fee that, according to reports, ranges from 15 to 30%. These delivery commission fees have been a source of irritation for McDonald’s.
McDonald’s new partnership with DoorDash is set to launch in the Houston, Texas area on July 29.
Chris Kempczinski said: “Building on the success of McDelivery in the US, we’re excited to make McDelivery accessible to customers on DoorDash, which is available in all 50 states and reaches 80% of Americans, making it even more convenient for our customers to enjoy their favorite McDonald’s menu items on their terms.”
McDonald’s menu will be available as part of DoorDash’s subscription program. Members of this program will receive an unlimited number of free deliveries on all orders that equal or surpass $12.
After this partnership was announced, Uber’s shares dropped less than 1%, while shares of competitor GrubHub fell by 2%.