Domino's to use Uber for food orders, shares surge

STORY: Shares of Domino’s Pizza soared more than 10% in Wednesday trading after the pizza chain announced a partnership with Uber... in a bid to boost lagging sales.

Domino’s said its customers can start ordering through Uber Eats and its sister app, Postmates, beginning in four pilot markets in the U.S. this fall... with plans to spread nationwide by the end of the year.

Domino’s had been a holdout in working with third-party delivery companies, preferring instead its own app, website and drivers.

But the world’s largest pizza chain flagged a slowdown in its delivery business in April.

Under the exclusive deal, which lasts until at least 2024, Domino’s will have access to millions of potential new customers.

At the same time, Domino's will continue using its own uniformed drivers for deliveries, allowing it to maintain control of its brand, image and food quality.

Domino's has been raising prices on its menu items and increasing delivery charges to protect margins amid high inflation, and more consumers have turned to home-cooked meals as the cost of living has risen.

In April, Domino’s said its delivery same-store sales declined 2.1% in the first quarter, compared to a year ago. It's set to report second-quarter earnings on July 24.