- Uber gets priority on McDonald’s app orders. McDonald’s will prioritize Uber Technologies over DoorDash for orders placed on the McDonald’s app in 14 countries, making Uber “the preferred delivery partner” in markets including the U.S., U.K., Australia, Belgium, Canada, France and Germany, according to a joint statement Monday cited by Bloomberg.
- It is a boost for Uber Direct. The deal bolsters Uber’s white-label delivery service, which lets merchants deliver through Uber via their own channels; McDonald’s previously dispatched app orders through either Uber or DoorDash.
- The loyalty base is large. McDonald’s has more than 45 million loyalty members in the U.S. through its app, and the multiyear partnership includes joint perks, such as letting rewards members in some markets redeem points for discounts on Uber rides for a limited time.
- DoorDash keeps the storefront, not the priority. McDonald’s remains available as a restaurant option on both the Uber and DoorDash apps.
What Happened?
Under the new agreement, Uber takes precedence in the specified markets for deliveries ordered directly through McDonald’s own app, while both delivery platforms continue to list McDonald’s restaurants. Future benefits may include letting customers earn McDonald’s rewards on orders placed through Uber. The announcement follows a busy stretch in delivery: in late October, DoorDash announced plans to acquire grocery delivery service Instacart, and last week Uber and Amazon.com announced a delivery partnership for Prime subscribers, which sparked the biggest decline in DoorDash shares in a year.
Why It Matters?
The deal gives Uber preferred access to orders from a McDonald’s app with more than 45 million U.S. loyalty members and strengthens its pitch to merchants that want to keep customers in their own apps. For DoorDash, it is a second competitive blow in about a week after the Uber-Amazon tie-up. For McDonald’s, it is part of a push for faster growth after three quarters of U.S. same-store sales weakness, alongside a recalibrated value strategy.
What’s Next?
Watch for the next phase of perks, including whether customers can earn McDonald’s rewards on Uber orders, and how DoorDash responds as it integrates Instacart. McDonald’s is also working to persuade franchisees to sign on to a new plan featuring restaurant redesigns and streamlined kitchens, which will shape whether the chain can reverse its U.S. same-store sales slump.
Affected Tickers and Coins: MCD, UBER, DASH, AMZN, CART
Source: Bloomberg
