Strategy: McDonald's just made an unprecedented move that customers are already obsessed with (MCD)
McDonald's is jumping on the fast-food-delivery bandwagon and expanding its partnership with UberEATS to more than 1,000 locations.
McDonald's is jumping on the fast-food-delivery bandwagon.
On Wednesday, McDonald's said "McDelivery" with UberEATS, Uber's food-delivery service, was now available from more than 1,000 locations in Los Angeles; Chicago; Columbus, Ohio; and Phoenix, Arizona.
"We are bringing a new level of convenience to more of our customers as we continue to transform the McDonald's experience," McDonald's CEO Steve Easterbrook said in a statement.
McDonald's and UberEATS began testing McDelivery at 200 locations in Florida in January. According to the fast-food giant, the pilot test reflected consistent growth and resulted in high levels of customer satisfaction.
On social media, people living in areas that have had a chance to experience McDelivery seem split between two responses: disbelief and delight.
McDonald's isn't the only chain experimenting with delivery. Wendy's recently launched delivery at 135 locations in Ohio and Texas. And Panera Bread in January said it would roll out delivery this year at 35% to 40% of its locations.
While delivery is a compelling service to offer, it isn't simple for restaurants to add. Customers often spend less when ordering food for delivery, especially at casual-dining chains that rely on alcohol orders to drive sales. In-house delivery means added complexities, like paying drivers and increased insurance costs, but using a third party could mean losing control over the food's quality.
McDonald's sales have improved recently, with same-store sales at US locations increasing 1.7% in the first quarter of 2017. However, the company reported that customer visits at the chain have remained flat from a year ago.