McDonald’s Corp. (NYSE:MCD) has announced that it is partnering with UberEATS to provide delivery services for nearly 200 of its restaurants in Florida. Customers in Miami, Orlando, and Tampa will be able to have McDonald’s delivered to their door starting in late January. McDonald’s will make an announcement in January when delivery officially begins.
Customers will be able to order their food digitally on the UberEATS website or mobile app. Through UberEATS, customers will be able to track their order’s progress with the app as well. Customers will also be able to order food on the app and pick it up from the restaurant themselves. McDonald’s may expand its delivery service to other markets in the future depending on how its Florida customers respond.
In recent years, quick-service restaurants have been working on delivery in various forms. Progress has been spotty due to several unique characteristics of the quick-service market. Quick-service restaurants get about two-thirds of their business at the drive-thru because many customers want their food as fast as possible when they’re hungry. There is also the challenge of making sure that the items ordered get to their destination hot and fresh tasting.
McDonald’s is likely paying a commission to UberEATS that would minimize fees associated with delivery. Such an arrangement would be a first for McDonald’s and could turn out to be lucrative for the company. Having the McDonald’s menu on Uber’s food-ordering app may encourage consumers to consider it. UberEATS has expanded to 29 markets in the U.S. and 56 markets around the world since it launched one year ago.
McDonald’s has been available on other delivery platforms for some time. McDonald’s began testing delivery in New York City 18 months ago through a deal with Postmates. Last month, McDonald’s announced that it would offer mobile ordering starting in 2017. The company hopes to roll out mobile ordering at up to 25,000 restaurants worldwide by 2018, starting with leading markets including the U.S., Australia, Canada, France and the U.K. next year.
McDonald’s has added a number of new elements in recent years in a bid to generate more traffic. In 2015, McDonald’s introduced all-day breakfast and this year, announced the expansion of kiosk ordering and table service to more markets. The company is currently testing different sizes of Big Macs and Big Macs that feature Sriracha sauce. The company has also announced plans to eliminate milk and chicken products that contain added hormones by 2018.