McDonald’s concludes new deals with DoorDash and Uber Eats • GEEKSPIN


McDonald’s has entered into two new agreements with DoorDash and Uber Eats.

The fast food giant announced last month that its new deals with two of its largest food delivery service providers offered better terms for the chain’s franchisees. Although details of the deals have not been made public, McDonald’s said its franchisees should be able to generate more profit and attract more cash flow under the new deals.

The agreements also allow McDonald’s to integrate delivery into its own mobile app through DoorDash and Uber Eats’ “white label” services called DoorDash Drive and Uber Direct, respectively.

The announcement of the new deals came just two weeks after McDonald’s executives said they were renegotiating the chain’s contracts with DoorDash and Uber Eats in an attempt to seek better terms.

“What we’re trying to do with these conversations is take advantage of the fact that we’re the largest catering company in the world, that we have the ability to drive traffic to their apps that we think is second to none,” said Chris Kempczinski, CEO of McDonald’s. told analysts last October. “And that should be reflected in the rates we pay.”

The new agreements also prove that third-party delivery services play a huge role in McDonald’s overall business. McDonald’s digital sales, according to Restaurant Business Magazine, totaled $ 13 billion in total sales since the start of the year across the chain’s six largest markets, accounting for 20% of the company’s business, largely thanks to at the delivery.

McDonald’s delivery business didn’t take off until the start of the COVID-19 pandemic, but it should be noted that it has yet to recede even as markets have started to reopen. “We continue to see, even as the markets reopen and things start to return to normal, deliveries remain high,” Kempczinski said.

McDonald’s entered the delivery business in 2017 with an exclusive deal with Uber Eats. At the time, only 3,000 of the chain’s global restaurants offered this service. Today, more than 30,000 of the company’s 39,000 restaurants have a third-party delivery feature.

According to ComicBook.com, the high cost of commissions paid to third-party delivery companies in the past made it difficult for McDonald’s to profit from the service. For example, Uber Eats typically takes between 15% and 30% of the cost of the order to provide restaurants with delivery services. Although McDonald’s had always been at the bottom of that ladder, the chain had renegotiated its delivery agreements on several occasions in an effort to ensure that franchisees could benefit from delivery orders.

Currently, approximately 13,000 McDonald’s locations in the United States, Canada and Australia use DoorDash. While there are other third-party delivery companies that offer their services to McDonald’s, Uber Eats currently dominates most markets other than DoorDash.

Sources: Restaurant business magazine, ComicBook.com

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