Domino's won't be switching to UberEats anytime soon
- CEO Richard Allison said on CNBC's "Power Lunch" that the company believes that hiring its own delivery drivers gives it a competitive advantages.
- Domino's was the first pizza chain to invest heavily in its digital platforms, giving it up a leg up on the competition.
- The arrival of e-commerce delivery services like UberEats and Grubhub has increased its number of rivals.
It doesn't look like Domino's will be switching to a third-party delivery service like UberEats or Grubhub anytime soon.
CEO Richard Allison said on CNBC's "Power Lunch" that the company believes that hiring its own delivery drivers gives the pizza chain advantages in both service and cost.
"When a customer orders from Domino's, I want a Domino's uniformed driver to show up and deliver that pizza," he said Tuesday. "It helps us to control customer experience and also the quality of our product."
Domino's was the first pizza chain to invest heavily in its digital platforms, giving it up a leg up on the competition. The growing use of e-commerce delivery services has increased its competition, but Allison is still confident that the company can deliver its pies effectively as it's been doing for decades.
To bolster its ability to deliver pizza, Domino's has been "fortressing," or increasing its number of locations across the U.S. Instead of the nearest location being nine minutes away, Domino's is trying to shave that distance down to a four or five minute drive.
"It allows us to be more consistent and fast with our delivery," Allison said, adding that the strategy can increase tips for drivers.
Earlier Allison met with investors at the ICR Conference in Orlando.