McDonald’s announces partnership with DoorDash for McDelivery services
Category: #business  | By Mateen Dalal  | Date: 2019-07-17 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

McDonald’s announces partnership with DoorDash for McDelivery services

McDonalds, the American fast food chain, recently announced expansion of its delivery options with inclusion of a new delivery partner, DoorDash and has ended its exclusive partnership with UberEats, cite sources.

For the record, since 2017, UberEats has been the only U.S. delivery provider for McDonald’s, bringing delivery to around 64% of the McDonald’s stores in the U.S. Since then, delivery business for McDonald’s has grown to $3 billion. Still delivery orders only make up about 2%-3% of its business, said U.S. Head of McDonald’s, Chris Kempczinski.

Reportedly, McDonald’s had been trying to lower delivery commission fees and has ultimately put an end to the exclusive partnership with UberEats. Every time a customer orders via UberEats’ platform, restaurants have to pay a fee that ranges between 15%-30%, that takes away a considerable amount from the profit of the restaurants.  Uber, in a filing to go public, stated that it charges less service fee from some of the renowned chain restaurant partners, in order to get access to customers of those restaurants.

As per sources close to the matter, delivery commission fees have been an issue for McDonald’s United States franchisees, who formed the National Owners Association in 2018, as corporate management pushed for changes that affected profitability of the fast food chain. MacDonald’s partnership with DoorDash will be launched soon in Houston, Texas, area across more than 200 restaurants.

Kempczinski was reported to say that the company is elated to make McDelivery accessible to customers via DoorDash, which is estimated to reach 80% of the Americans and will be available in 50 states in the U.S. This will make it even more convenient for the customers to enjoy items from McDonald’s menu on their terms, Kempczinski added.

As part of the partnership agreement, McDonald’s menu will be now available on subscription program of DoorDash, which provides its members with unlimited free delivery on orders of $12 or above.

Source credits: https://www.cnbc.com/2019/07/16/mcdonalds-adds-doordash-as-partner-ending-exclusivity-with-ubereats.html

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

AWS and ATOS expand collaboration to achieve digital transformation faster

AWS and ATOS expand collaboration to achieve digital transformation faster

By Mateen Dalal

Amazon's subsidiary, Amazon Web Services, Inc. (AWS), has recently entered into a global Strategic Transformation Agreement with Atos, a leader in digital transformation, high-performance computing, and information technology infrastructure. This...

LadBible to lay off 10% of its workforce amid tough business conditions

LadBible to lay off 10% of its workforce amid tough business conditions

By Mateen Dalal

LadBible, one of the U.K.'s largest success stories in online media, is laying off 10% of its workforce as a result of a decline in its share price and a warning about difficult trading conditions. The Manchester-based corporation reportedly b...

Oral-B & iADH partner to make oral care positive & accessible for all

Oral-B & iADH partner to make oral care positive & accessible for all

By Mateen Dalal

Oral-B, a well-known American oral hygiene products brand, has reportedly inked a partnership deal with iADH (International Association of Disability and Oral Health), in order to make oral care more positive, accessible, and inclusive for disabled p...