Domino Delivery: Domino’s, the pizza giant, has a clever solution to its delivery business slump: more cars.
Domino’s relies on delivery, so it has avoided third-party aggregators like DoorDash, which charge restaurants to use their platforms and drivers. Controlling operations has been the goal. The chain’s delivery business has languished for over a year due to a shortage of drivers and customers cutting back due to rising prices. In July, Domino’s partnered with Uber Eats and Postmates to increase sales.
Domino’s still won’t hire delivery drivers. To meet the expected demand from these new channels, the company is hiring more drivers. The company also hopes to attract drivers by expanding its delivery fleet.
Domino’s CEO Russell Weiner was optimistic about hiring enough drivers for third-party delivery services during an analyst call to discuss the company’s second-quarter financial results. He expressed confidence in accomplishing this.
Domino’s is expanding its Chevy Bolt fleet to boost delivery. The company has seen more delivery driver applications than in 2019, which is encouraging. Domino’s doesn’t require drivers to own cars, unlike Uber, making it more appealing to a wider pool of candidates. The franchised business did not disclose the number of drivers without cars.
Domino’s has 800 electric vehicles and plans to have 1,100 by year’s end, according to a company representative. The delivery fleet includes more than 1,000 non-EV cars.
Domino’s benefits and suffers from Uber Eats. The company hopes it will boost delivery sales after months of decline. Reddy, the CFO, expects similar challenges in the third quarter after delivery sales at locations open at least a year dropped 3.5% in the second quarter.
The company plans to update its loyalty program in the coming months to boost sales. Next year, the Uber Eats partnership and other strategic efforts should improve.
Domino’s shares surged after the partnership announcement, which analysts praised as a sign of the company’s flexibility and determination to improve its US delivery business.
Weiner stressed Domino’s obsession with delivery during the call. Domino’s reputation may suffer from third-party delivery. The company is cautious about working with these platforms. Domino’s controls delivery by keeping its drivers. The company advertises on the platform but is not focused on Uber Eats traffic.
Domino’s offers its best deals and prices on its own platforms to retain customers and ensure a smooth delivery experience.