McDonald's Names Uber Eats Preferred Partner for App Delivery Orders in Expanded 14-Market Deal

MCD and UBER announced a multi-year expansion of their partnership across 14 markets: the U.S., Australia, Belgium, Canada, France, Germany, Ireland, the Netherlands, New Zealand, Poland, Portugal, Spain, Switzerland and the U.K.. The core change is in McDonald's own app: Uber Eats becomes the preferred integrated delivery fulfillment partner for app orders in participating markets including the U.S., Australia, Canada, France, Germany and the U.K., with those orders fulfilled primarily through Uber Direct, Uber's white-label delivery service.

Loyalty is the second leg. Starting this month, MyMcDonald's Rewards members in select markets can redeem points for discounts on Uber rides, and the companies plan to let customers earn McDonald's points on Uber Eats orders, without giving a date. Investing.com reported that the deal gives Uber Direct access to more than 45 million active loyalty members on the McDonald's app in the U.S. alone. McDonald's said McDelivery has grown into a global business of more than $20 billion a year, and the relationship dates to 2017, with McDonald's now on Uber Eats in 30 countries.

The competitive read is narrower than some headlines suggest. Bloomberg framed the move as edging out DASH, but the release does not mention DoorDash, and Investing.com reported that McDonald's restaurants remain listed on both the Uber Eats and DoorDash marketplaces. What shifts is who fulfills orders placed in McDonald's own app. Uber shares rose about 1.5% in premarket trading on the news, per Investing.com. The markers to watch are how much app-order volume moves to Uber Direct, the timing of the earn-on-Uber-Eats feature, and any response from DoorDash on its McDonald's marketplace business.