Uber (UBER) & Domino’s (DPZ) – Domino’s Earnings – May 4, 2024
Domino’s reporting earnings this week, but here we’ll specifically focus on what they had to say about Uber. The UberEats launch for Domino’s is going well. It’s on track to exit the year with 3% of its revenue coming from the channel and is tracking ahead of long term comp sales targets thanks to this new outlet. The company is pleased with progress and incrementality, yet it is still evaluating precisely how much of this business truly is incremental.
It also talked about a promotional environment in Uber’s marketplace. While that sounds intimidating for Uber at first glance, it isn’t. Domino’s is seeking to extend its marketing dollars through the channel to capture traction within the powerful demand aggregator’s network. That means more sponsored listings in the Eats marketplace, and better affordability to drive transaction volume. There’s a reason why the pizza giant is motivated to spend these dollars. Considering Uber’s demonstrated take rate durability, this bodes well for the company. Not monumental or irrelevant.
