Domino's Pizza signs deal with Uber Eats in bid to make more dough

Domino's Pizza said on Wednesday it's partnering with Uber Eats to make deliveries in the US and 27 international markets.

It's a major reversal for the world's largest pizza company, which has long said that working with third-party apps didn't make economic sense because it employs its own drivers.

Under the agreement, Domino's drivers will still make the deliveries that customers order via Uber Eats.

Ann Arbor, Michigan-based Domino's wouldn't say what percentage Uber Eats will take from each order.

The partnership will be piloted in four US markets starting this fall and is expected to be available nationwide by the end of 2023, Domino's said.

Domino's CEO Russell Weiner said in a statement that third-party delivery operators have reached such a large scale that it makes sense for Domino's to partner with them.

Weiner said Uber Eats will provide access to new customers for Domino's.

The company has been struggling with higher food costs, labour shortages and increasing competition from delivery companies.

Domino's same-store sales fell 1 per cent in the US last year, while international same-store sales were flat. The metric is a key indicator of a restaurant's health.