Restaurants

Domino's stock jumps more than 10% as pizza chain partners with Uber for food orders

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Franchisee Tom Peterson demonstrates a new Domino's Pizza Inc. app, part of their digital ordering system, at a Domino's "pizza theater" location in Jersey City, New Jersey.
Craig Warga | Bloomberg | Getty Images

Domino's Pizza customers can order its products through Uber's Uber Eats and Postmates apps, the pizza chain said on Wednesday, in a bid to boost sales amid a slowing delivery business.

Shares of the pizza maker were up 11% in early trading.

The pizza maker, which had flagged sluggishness in the delivery business in April, said the partnership would begin in four pilot markets in the fall in the U.S.

Ordering on Uber's delivery apps is expected to be enabled across the country by the end of 2023, with Domino's and its franchisees handling the delivery, the company said.

The world's largest pizza chain has been raising prices on menu items and increasing delivery charges in a bid to shield margins from high input costs as a sticky cost of living crisis turned consumers towards cooking meals at home.

Domino's added that it will look to transition to deliveries through Uber Eats in 27 international markets this year, including in the United Kingdom, Canada and Australia which are common between the two companies.