McDonald's taps Uber as first-call courier for app orders in 14 countries

What changed and where

McDonald's will send orders placed through its own app to Uber first in 14 countries, giving Uber precedence over DoorDash. The companies named the US, UK, Australia, Belgium, Canada, France and Germany among the markets and announced the shift in a Monday statement.

Until now, McDonald's routed app orders to either network. Under the new setup, Uber becomes the preferred delivery partner in the specified locales.

Why Uber cares

The agreement leans into Uber Direct, the company's white label delivery service that lets merchants use Uber couriers for orders taken through their own channels. It also plugs Uber into a big audience, with more than 45 million McDonald's loyalty members in the US.

The competitive backdrop is heating up. In late October, DoorDash said it planned to acquire the grocery-delivery platform Instacart. Last week, Uber and Amazon unveiled a delivery tie-up targeting Prime subscribers, and DoorDash shares logged their steepest drop in a year.

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Perks and availability

The multiyear partnership includes shared benefits across Uber and McDonald's. In certain countries, McDonald's rewards members can, for a limited time, apply their points toward Uber ride discounts, and the companies are also exploring letting customers earn McDonald's rewards when they place orders through the Uber platform.

Both the Uber and DoorDash apps will keep listing McDonald's as an available restaurant.

The McDonald's playbook and investor angle

The move comes as McDonald's tries to reignite growth after three straight quarters of weaker same store sales in the US. The company is recalibrating its value strategy and seeking franchisee buy-in for a new blueprint featuring restaurant makeovers and more efficient, streamlined kitchens to speed food preparation.

The bottom line: Uber gains access to McDonald's large loyalty base.

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