Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ The McDonald's deal with Dash-Dash delivers a blow to Uber Eats

The McDonald's deal with Dash-Dash delivers a blow to Uber Eats

DoorDash Inc. will begin delivering from

Mac donolts

MCD -0.27%

Restaurants in Houston later this month, a blow to

Uber Technology

UBER -0.73%

Relationship with the burger giant as the only company currently shipping its food to US customers

This move comes as companies, including Uber Eats, to fight for a stake in fast growing business to deliver food to homes and customers' offices. Investors have put money into start-ups, including DoorDash and PostMates Inc., a competing service filed earlier this year to publicize their shares.

DoorDash, estimated recently at $ 1

3 billion after funding $ 600 million in May, has significantly increased its bargain deals with restaurants last year.

DoorDash and McDonald's said on Tuesday that suppliers will take orders from 200 Houston's restaurants start on July 29th. McDonald's will also be added to the DoorDash subscription service, which has close to a million members who pay a monthly fee of $ 9.99 for free shipping and lower service fees for orders of at least $ 12.

will grow nationwide later this year if they succeed in Houston, said leaders of the two companies. Both companies refused to discuss the terms of the deal.

The doorkeepers' fleet of DoorDash contractors, within the delivery distance of about 80 percent of US households, helped win the giant's burger business, McDonald's senior vice president of operations Bill Gareth said. That was really appealing to us so far, "said Mr. Garrett in an interview.

Recently, some restaurants have also withdrawn from high fees and other delivery terms, which they believe can make these orders unprofitable. Last year, McDonald's negotiated the commission she paid to Uber to fulfill her orders. Uber also agreed to spend more on marketing and promotions for the partnership as part of the new conditions the two companies have recently achieved. But what is convenient for customers may not be good for restaurants. That's why.

McDonald's is one of the first major restaurant companies to join Uber Eats when the company adds food delivery to its US services in 2017. Uber Eats offers a supply of over 9,000 McDonald's restaurants. s in the US, more than half of the company

McDonald's recently opened discussions with other suppliers, including


in addition to DoorDash, according to people familiar with the discussions. Grubhub's shares fell by more than 2% on Tuesday, while supply company Waitr Holdings Inc. fell by nearly 6%.

n. Gareth said McDonald's did not close the doors to partnerships with other suppliers.

Share your opinion

What's your experience when you ordered a delivery meal from Uber Eats or DoorDash? Join the conversation below.

"We know that customers are very loyal to certain applications. We want to provide such a level of convenience, "he said.

The McDonald's and Uber executives said they believed McDonald's DoorDash food supplies would be profitable for both companies. 19659006] According to DoorDash Chief Operating Officer Christopher Payne

Write to Heather Haugen at heather.haddon@wsj.com

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