McDonald’s Corp. (NYSE:MCD) and Uber Technologies Inc. (NYSE:UBER) announced Monday a multiyear expansion of their global partnership to improve food delivery and loyalty rewards across 14 markets.
The agreement covers the U.S., Australia, Belgium, Canada, France, Germany, Ireland, the Netherlands, New Zealand, Poland, Portugal, Spain, Switzerland and the U.K.
The companies first partnered in 2017. Since then, McDonald’s has expanded its presence on Uber Eats to 30 countries.
McDonald’s will prioritize Uber over DoorDash, Inc. (NASDAQ:DASH) to fulfill orders placed on its app in 14 countries, reported Bloomberg.
Uber Becomes Preferred Delivery Partner
Under the expanded agreement, Uber will become McDonald’s preferred delivery partner for orders placed through the restaurant chain’s app in participating markets.
These include the U.S., Australia, Canada, France, Germany and the U.K.
Customers will be able to place and track delivery orders without leaving the McDonald’s app. They can also continue ordering through Uber Eats.
Uber will primarily fulfill orders through Uber Direct, its delivery service for businesses, in partnership with Deliverect.
The integration aims to simplify ordering and improve delivery reliability as McDonald’s expands its digital business.
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Loyalty Rewards Expand to Uber Rides
Uber will also become McDonald’s exclusive delivery and rideshare rewards partner in participating markets.
Starting in November, MyMcDonald’s Rewards members in select markets can redeem loyalty points for Uber ride discounts through a seasonal promotion.
Additionally, the companies plan to let customers earn rewards points on eligible Uber Eats orders. Customers could then redeem those points for benefits through the McDonald’s app, including Uber ride offers.
McDonald’s Senior Vice President of Global Franchising and Delivery Mason Smoot said McDelivery generates more than $20 billion annually, reflecting growing demand for convenient ordering options.
Uber President and Chief Operating Officer Andrew Macdonald described the agreement as the companies’ broadest partnership expansion since 2017.
The deal combines Uber’s delivery and transportation networks with McDonald’s digital ordering and loyalty programs.
McDonald’s operates more than 46,000 restaurants across over 100 countries, with roughly 95% run by independent local operators.
Price Action: Uber Technologies shares were up 1.43% at $69.56 and McDonald’s shares were up 1.37% at $280.31 at the time of publication on Monday, according to Benzinga Pro data.
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