McDonald’s Knows How Much Uber Eats Needs Its Business

If Uber’s IPO filing made anything clear, it’s that Uber Eats relies on its chain partnerships to survive. The McDonald’s partnership is critical to Uber’s success as a public company — and they know it.

McDonald’s Corp. is working to make delivery more profitable for its franchisees — and that means it could turn to providers other than Uber Eats.

…While particulars of the deal are still being finalized, the memo said the terms will include “significantly reduced commission rates for all U.S. restaurants” and ultimately allow franchisees to use different delivery partners. Ending McDonald’s exclusive deal with Uber Technologies Inc. would open a window for other popular providers like DoorDash Inc. and Grubhub Inc. It’s a sensitive time for Uber, whose initial public offering is expected next month.

…The chain in 2017 announced that it would rely exclusively on Uber Technologies Inc. to handle the service that it’s been expanding across its 14,000 U.S. locations. At the time, the company described delivery as a $100 billion market that would help it reignite sales.

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