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McDonald’s Doubles Down on Food Delivery With UberEats

Delivery will soon be available at 10,000 locations

Official

An increasing number of McDonald’s customers don’t just want a cheap burger and fries — they want that meal deal delivered to their door. Thanks to a partnership with UberEats, the chain is pushing further into the burgeoning delivery sphere. “It’s profitable... and right now we’re looking to expand where UberEats has expanded around the world,” CEO Steve Easterbrook said on an earnings call with investors today.

In other words, the brand is seeing significant enough returns — particularly from new consumers — to invest further in delivery with UberEats as its main partner for now. America’s biggest burger chain started testing delivery at just 200 locations late last year in a partnership with UberEats. Delivery is now available in 5,000 out of chain’s 37,000 locations. “It’s meaningful in those that offer it,” Easterbrook said, “but we have a ways to go in terms of success across our system.”

According to the burger chain, 75 percent of its customers live within three miles of a McDonald’s location. In some ways, this simplifies delivery logistics.

“We’re seeing it appeal to younger consumers, and in college towns,” McDonalds’s CFO Kevin Ozan said on the call. More than 60 percent of delivery orders happen in the evenings and overnight. “They tend to be group orders, so the average delivery check is about twice the average restaurant check,” Ozan said. The company is looking into how to design packaging specifically for delivery orders, and to offer value meal bundles to appeal to groups. “You can expect us to move from 8,500 restaurants [that offer delivery] to 10,000 later this year, and expect the trend to continue upward,” Easterbrook added.

UberEats is said to take around 30 percent of each food delivery transaction, so McDonald’s will need plan for future growth with that in mind. Ozan also said the company was looking to get consumer data and repeat visit information out of its online ordering and delivery business. Meanwhile, expect to see more advertising around McDonald’s in-store value deals and delivery offerings. “We’re focusing on awareness,” Easterbrook said, “as we see a correlation between awareness” and order frequency and restaurant visits.

McDonald’s Expands Delivery Thanks to UberEats Partnership [E]
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