McDonalds Finds Relevance with Food Delivery Service Expansions
McDonald’s is teaming up with Uber Eats to deliver to 1,000 more U.S. locations by expanding their services to acquire a new stream of revenue. Uber Technologies Inc. has been designated to handle the logistics of the program.
The delivery service usually averages around $5 per delivery but it varies per restaurant and availability in various locations. McDonalds is taking an aggressive approach to implement this new potential stream of revenue. It is estimated that 1 in every 4 of their restaurants will offer the delivery service by the end of June.
Measurements gathered early during the launch of this service have indicated that Uber Eats picks up the slack during times when McDonalds seems to be the slowest. As much as 60% of orders are being placed during the evening after midnight.
This new “McDelivery” program has the potential to significantly increase revenue during times when traffic typically slows down.
Consequently, business in-store normally slows down during the hours that “McDelivery” is most active. This could provide a significant stream of revenue for franchisers since they now have the option to take advantage of the opportunity they have to provide prompt delivery of these types of orders any time business slows.
Steve Easterbrook, CEO of McDonald’s is jumping on the delivery service bandwagon along with Amazon and several other retailers and restaurants with the announcement that they would team up with Uber Eats.
With this new generation that relies so heavily on instant gratification and convenience it appears to be doing the trick to keep them relevant.
McDonald’s has already found great success starting their delivery service in the Middle East and Asia. Now, by the end of June they are projected to launch 3,500 participating locations with a steady plan to add more to the agenda.