Financing

McDonald’s inks a long-term delivery deal with JET

It’s the latest in a series of renegotiated contracts with major global delivery companies as the burger chain works to solidify the service.
McDonald's delivery deal
Photograph: Shutterstock

McDonald’s on Tuesday said it has a new, long-term global deal with the Amsterdam-based Just Eat Takeaway.com to provide delivery services around the globe.

It’s the latest in a series of deals the company has renegotiated with major third-party delivery providers, part of an effort to ensure that the service remains profitable for operators. The burger giant had previously announced renegotiated deals with Uber and DoorDash.

Yet the deals solidify the service as a channel for the chain’s customers. McDonald’s has delivery in more than 33,000 of its 40,000 global restaurants, up from just 3,000 five years ago. The company has also been making delivery an option on its mobile app.

The deal between McDonald’s and JET “represents a next step in growing a mutually beneficial food delivery business and opens the door for further growth in the markets in which the partnership is active,” Joerg Gerbig, chief operating officer of JET, said in a statement.

He said the partnership will enable the companies to work together to improve operations, speed and accuracy while accelerating the growth of delivery. “Just Eat Takeaway.com is committed to working on future innovations that benefit the customers, McDonald’s restaurants and couriers.,” Gerbig added.

McDonald’s announced its intention last year to renegotiate its deals, suggesting that the company’s size—it is the largest restaurant company in the world—and its brand reach give it an ability to get customers to these delivery providers.

Chris Kempczinski, McDonald’s CEO, told analysts last year that the company was trying to “leverage the fact that we are the largest restaurant company in the world, that we have the ability to drive traffic onto apps that we think is second to none. And that should be reflected in the rates that we’re paying.”

Gerbig’s comments hint at efforts between the companies to improve service. McDonald’s deal with DoorDash incentivizes operators to produce orders quickly, while also favoring the delivery providers loyal “Dash Pass” customers.

Restaurant chains want to ensure that orders are delivered quickly, because then they get to customers fresher. Delivery companies, meanwhile, want to ensure that their drivers don’t have to wait long to get orders so they can spend more time making deliveries.

This deal also covers a lot of McDonald’s biggest markets. JET has presence in numerous markets around the globe, including the U.S. as well as the U.K., Canada and much of Europe.  

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