Dive Brief:

• McDonald's announced on Monday new global partnerships with DoorDash and UberEats that will grow its McDelivery channel, which was first launched in 2017, in the U.S. and around the globe. DoorDash will power delivery orders placed on the McDonald's app through the company's white label product, DoorDash Drive, while Uber will power orders through the McDonald's app through its white label product, Uber Direct.
• These long-term, global strategic partnerships will build on the channel's growth — from 3,000 restaurants in 2017 to more than 32,000 restaurants in 100 countries today. In McDonald's top six markets, over 20% of sales, or about $13 billion year-to-date, have come through digital channels including delivery, CEO Chris Kempczinski said during McDonald's Q3 earnings call on Oct. 27.
• DoorDash and Uber Eats stand to gain from these new McDonald's deals, which could drive traffic or increase their market share. McDonald's and DoorDash first partnered in 2019, and Uber was the chain's first delivery partner, launching McDelivery in 2017.

Dive Insight:

Taking a white-label approach allows McDonald's to control the customer journey, own consumer data and better customize promotions accordingly. Personalization has been a priority for the company since announcing its Accelerating the Arches strategy in November 2020, which includes its new MyMcDonald's loyalty program. The program has grown to include 21 million members.

The chain's delivery sales have also grown by billions, Kempczinski said on McDonald's Q3 earnings call, though he didn't break down the specific sales mix of the off-premise channel. On the call, Kempczinski said the company's scale offers competitive advantages that could allow the company to negotiate favorable commission fee rates.

"We certainly believe we have a great proposition for third-party partners on a global basis. And so what we're trying to do through these conversations is leverage the fact that we are the largest restaurant company in the world — that we have an ability to drive traffic on 3PO apps," he said. "That should be reflected in the rates we're paying with our 3PO partners."

According to McDonald's, its new partnership with DoorDash and Uber Eats will allow for seamless integration of McDelivery into its global mobile app, which the company expects will create even more personal experiences with customers.

A white label model allows McDonald's to leverage DoorDash's and Uber's technology and delivery logistics, as well as their scale. DoorDash currently commands 57% of the U.S. market, while Uber owns 24% of the market. This will support the company's continued global growth in the channel, which is expected to stay elevated. During Q3, McDonald's comp sales in Germany exceeded 2019 levels for the first time, driven by the expanded deployment of delivery, while Australia achieved record delivery sales on the quarter.