DoorDash stock rises on Domino’s partnership

Investing.com -- DoorDash Inc. (NYSE:NASDAQ:DASH) shares climbed 4.2% following the announcement of a partnership with Domino’s Pizza Inc. (Nasdaq:NYSE:DPZ), which will see orders on DoorDash’s Marketplace delivered by Domino’s drivers. The collaboration is set to launch nationwide in the U.S. in May 2025 and will expand to Canada later that year.

The partnership combines DoorDash’s extensive local commerce platform with Domino’s robust delivery network, aiming to increase sales and customer reach, particularly in suburban and rural markets. The initiative is expected to help Domino’s tap into the $1 billion opportunity the aggregator marketplace represents for the company, according to Joe Jordan, Domino’s chief operating officer and president – U.S.

DoorDash’s president and chief operating officer, Prabir Adarkar, expressed enthusiasm about welcoming Domino’s to their Marketplace across North America, citing DoorDash’s unmatched scale and reach as key factors in driving incremental sales for Domino’s.

The strategic alliance is designed to offer a seamless integration with a self-delivery model, allowing DoorDash users to order from local Domino’s stores through the DoorDash app with integrated GPS tracking to monitor delivery by a uniformed Domino’s driver. Additionally, Domino’s orders will be accessible to DashPass subscribers, who enjoy benefits such as unlimited $0 delivery fees on orders over $12.

The announcement reflects a significant step for both companies in enhancing their delivery and digital ordering capabilities. However, it’s important to note that Domino’s loyalty program will remain exclusive to its e-commerce platforms and not be available through the DoorDash app.

This move by DoorDash and Domino’s highlights an ongoing trend in the food delivery industry, where partnerships and integrations are increasingly seen as a way to leverage existing networks and technology to improve market presence and customer service.

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