On Tuesday, McDonald’s announced to the world that they will be ending their exclusive deal with Uber Eats and would now be teaming up with another delivery service named DoorDash.
From onwards of 29th July, McDonald’s located in Houston, Texas will have their deliveries made by DoorDash which is a city that has nearly 200+ McDonald’s locations. In addition to this partnering up, McDonald’s will also be choosing the DoorDash’s subscription service by the name Dash pass.
This subscription service will allow nearly 1 million members to absolutely 0 dollars for delivery fees. However, this free delivery will be for an order of a minimum of 12 dollars and also can be availed for select restaurants.
DoorDash is the food delivery service based in San Francisco, which has reportedly started after GrubHub but has now taken over its business rather quickly. As per the credit card data of the research firm named Second Measure, DoorDash has a claim to aiming nearly 32 percent of the sales for the May of 2019 for the food delivery companies. As for GrubHub, they made nearly 31.7 percent of the total food deliveries with Uber Eats being third on the list with its 19.7 percent sales.
Back in April, McDonald’s was a little chaffed up about the high delivery fees by Uber Eats and were thinking to shift towards other food delivery services. Before considering such measures, many executives and senior members of the McDonald’s franchises met up with Uber Eats for talks to lower the delivery fees.
This move from McDonald’s prompted other restaurant chains such as Applebee’s and the Cousins Submarine to also negotiate for lower fees from their respective food delivery partners along with spending more money over promotional discounts and the marketing of the food brands.
Now for DoorDash, their parenthesis with McDonald’s is their biggest with any of the restaurant chains. DoorDash is currently riding high on success after they got an investment of nearly 2 billion dollars from investors like Softbank. The company has now been valued at a sum of nearly 12.6 billion dollars which is clearly double the value of the publically traded delivery service GrubHub. Still, both Uber Eats and DoorDash are not profitable and only GrubHub is in profit.
Tech media reached to Uber Eats for comments on their termination of the partnership with McDonald’s but there still has been no response.