Competition in the pizza delivery space is heating up after Little Caesars Pizza entered into a partnership with DoorDash.
Little Caesars Finally Embraces Delivery
For the first time in Little Caesars' six-decade history, the Detroit-based pizza chain will start delivering pizzas to customers, according to The Wall Street Journal.
The partnership will start Monday and include the majority of its nearly 5,000 stores across the U.S. and Canada.
Little Caesars CEO David Scrivano told WSJ the "consumer is going toward home delivery."
A Little Caesars spokeswoman told WSJ its delivery fee on DoorDash will cost $2.99 plus a 10% service fee that will be capped at $3.
Why It's Important
Little Caesars' new push into delivery naturally poses competition to pizza chains that emphasize delivery, including Domino's Pizza, Inc. (NYSE: DPZ).
On the other hand, Little Caesars has established a reputation of low prices by operating as a carry-out-only business.
A DoorDash spokeswon told WSJ a pilot test with Little Caesars showed signs that a full-scale launch will increase sales and profits for both companies.
It is unclear how or if Dominos's will respond with a partnership of its own. The company previously spoke out against third-party delivery partners, as it prefers to invest in its own delivery infrastructure.
Photo by Mrmiscellanious via Wikimedia.