Domino’s Pizza (DPZ) is expanding its delivery capabilities by partnering with DoorDash (DASH), an American food delivery platform. This move aims to expand its customer base in the United States. The partnership is currently in a pilot phase at select locations, with a nationwide U.S. rollout planned for May 2025, followed by expansion into Canada later this year.
Under this deal, Domino’s will allow customers to place orders directly through the DoorDash platform. Notably, DPZ will maintain control over the delivery process, under which its uniformed drivers will fulfill these orders.
A key driver for this partnership is DASH’s strong presence in suburban and rural areas, where Domino’s seeks to expand its customer base. This deal allows Domino’s to reach customers who may not have previously ordered through their platform.
DPZ CEO Sees $1B Opportunity in Third-Party Delivery Platforms
Importantly, the move comes as Domino’s CEO Joe Jordan views delivery apps as a significant growth opportunity, estimating a potential $1 billion increase in sales by reaching new customers.
Also, the partnership with DASH follows Domino’s recent deal with Uber Eats, another third-party delivery service. While Uber Eats currently accounts for a small percentage of Domino’s orders, the DoorDash partnership is likely to further accelerate growth.
Is DPZ a Good Stock to Buy?
Turning to Wall Street, DPZ stock has a Moderate Buy consensus rating based on 15 Buys, nine Holds, and one Sell assigned in the last three months. At $487.83, the average Domino’s Pizza price target implies a 4.8% upside potential.
