McDonald's said on Tuesday it would join DoorDash, the food distribution company, the first agreement for the fast food giant, since it was reported that it was considering finalizing its exclusive agreement with Uber Eats to early this year.
Beginning July 29, DoorDash will begin delivering to McDonald's in Houston, Texas, serving more than 200 locations throughout the city. McDonald's will also join DoorDash's subscription service, Dash Pass, which offers its 1 million members unlimited $ 0 shipping rates on orders of $ 12 or more to selected restaurants.
DoorDash, based in San Francisco, recently overtook GrubHub to become the largest food delivery service in America, according to the new credit transaction data from the Second Measure research firm. DoorDash claimed 32 percent of sales in May 2019 among Second Measure's food distribution companies, compared to 31.7 percent for Grubhub. Uber Eats came in third with 19.7 percent of sales.
In April, Bloomberg reported that McDonald's was making fun of the high rates of Uber Eats and was thinking of turning to other delivery partners. Citing an internal memo, the leaders of the hamburger chain and the franchises met with Uber Eats to negotiate lower rates. That encouraged restaurant chains, including Applebee's and Cousins Submarines, to negotiate lower commissions while asking their delivery partners to spend more on marketing and promotional discounts, according to an article in the Wall Street Journal . last month.
It was a big problem when Uber Eats and McDonalds first announced their partnership in early 2017. The fast food chain had a prominent place in Uber's S-1 presentation before the Securities and Exchange Commission before its OPI. The presentation contained two full pages dedicated to his association with McDonald's. He said that Uber Eats accounts for up to 10 percent of food sales in some of the restaurants in the hamburger chain.
For DoorDash, McDonald's represents its largest restaurant chain so far. The delivery company has been flying high since it obtained $ 2 billion in investor financing, including Softbank. The last time it was valued was $ 12.6 billion, almost double the market capitalization of Grubhub's $ 6.6 billion that is publicly traded. DoorDash and Uber Eats are not profitable, while Grubhub is.
"McDonald's is a favorite of customers and a leader in their craft, and it's an honor to offer their loyal fans more ways to enjoy McDelivery through DoorDash," said Christopher. Payne, Director of Operations at DoorDash
A spokesperson for Uber did not immediately respond to a request for comment.