(Bloomberg) -- McDonald's Corp. will expand delivery service to 1,000 more U.S. restaurants this week, including locations in the New York area, part of a gambit that the 77-year-old chain can find a major new source of growth.
The burger chain is relying on Uber Technologies Inc.'s UberEats to handle the “McDelivery” program, which is now available from more than 2,000 locations. Other cities getting the service this week include Dallas; Denver; Fresno, California; Houston; San Antonio; Seattle; and Washington. UberEats typically charges a booking fee -- say, $4.99 -- that can vary by location.
The Big Apple -- where delivery services are widely used and highly competitive -- provides the biggest testing ground yet for the push. The stakes are high: The Oak Brook, Illinois-based company sees restaurant delivery as a $100 billion market that could help reignite sales. In New York, UberEats is available from 7 a.m. until 1 a.m. seven days a week.
“We'll bring the McDonald's experience to more customers in their homes, their dorm rooms, their workplaces and beyond,” Chief Executive Officer Steve Easterbrook said at an investor conference on Wednesday. “We see significant potential.”
After testing delivery for years, the fast-food giant is now racing to scale up the effort. The idea is to offer the option from 3,500 U.S. locations by the end of June. Orders frequently come later in the day, bringing in revenue at a time when customers may not be walking into restaurants, Easterbrook said.
“Nearly 60 percent of orders are being placed during the evening or late night,” he said. “And because speed matters, we're getting food from order inception to the customer's door in less than 30 minutes, on average.”
To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net.
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Lisa Wolfson
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