Domino's Pizza Inc shares powered 12% higher in pre-market trading on Wednesday after the pizza chain announced that customers can order its products through Uber's Uber Eats and Postmates apps, in an effort to increase sales as its delivery business slows.
Domino's said Uber Eats will be the exclusive third-party platform in the US until at least 2024, with the partnership kicking off in four pilot markets in the fall.
The company also noted that ordering on Uber's delivery apps is expected to begin in the US by the end of 2023, with Domino's and its franchisees handling the delivery.
Domino's, 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, Reuters reported.
Domino's added that it aims to transition to deliveries through Uber Eats in 27 international markets this year, including in the UK, Canada and Australia.
Shares of Domino's Pizza have gained 3% year to date but are down 11% over the past 52 weeks as of Tuesday’s closing price.
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