Darden and Uber Partner to Introduce On-Demand Delivery, with Olive Garden the First to Pilot

Rhea-AI Summary

Darden Restaurants (NYSE: DRI) and Uber Technologies (NYSE: UBER) have announced an exclusive multi-year delivery partnership, starting with Olive Garden in late 2024. The collaboration will enable on-demand delivery through Olive Garden's channels, powered by Uber Direct. A pilot program will begin in late 2024, with national expansion expected by May 2025.

Key points:

• Guests can order delivery via Olive Garden's website and app
• Service will be available at over 900 company-owned locations across the U.S.
• Olive Garden retains guest data and insights
• Custom integration aims to preserve team member and guest experience
• Partnership addresses growing demand for home delivery while maintaining Olive Garden's competitive advantages

Positive

• Expansion into on-demand delivery market, addressing customer demand
• Retention of customer data and insights through first-party delivery
• Potential for increased revenue through new delivery channel
• Preservation of team member and guest experience through custom integration
• National-scale efficiency and speed through Uber's delivery network

Negative

• Delayed implementation with pilot starting in late 2024
• Initial availability during pilot phase
• Potential impact on profit margins due to delivery costs

Insights

Financial Analyst

This partnership between Darden Restaurants (NYSE: DRI) and Uber Technologies (NYSE: UBER) represents a significant strategic move in the restaurant industry. By leveraging Uber's delivery network, Darden can tap into the growing demand for food delivery without compromising its operational model or customer data.

The phased rollout, starting with Olive Garden in late 2024 and expanding nationally by May 2025, allows for careful implementation and risk management. This approach could potentially boost Darden's revenue by capturing a new market segment while maintaining control over the customer experience and data.

For Uber, this exclusive partnership expands its Uber Direct business, diversifying its revenue streams beyond ride-sharing and third-party food delivery. The deal could serve as a model for future partnerships with other restaurant chains, potentially driving long-term growth for Uber's delivery segment.

Market Research Analyst

This partnership addresses a critical consumer trend: the growing demand for convenient, at-home dining options from beloved restaurant brands. By offering first-party delivery, Olive Garden can maintain brand control while meeting customer expectations for convenience.

The decision to keep ordering on Olive Garden's platforms is crucial. It allows Darden to retain valuable customer data and insights, which can be leveraged for targeted marketing and menu optimization. This approach contrasts with third-party delivery apps that often act as intermediaries between restaurants and customers.

The success of this model could influence industry standards, potentially leading other restaurant chains to seek similar partnerships. This shift could reshape the competitive landscape in food delivery, challenging the dominance of third-party delivery apps and giving restaurants more control over their delivery operations and customer relationships.

Olive Garden guests will soon have another option to enjoy their favorite dishes at home, with orders made through Olive Garden channels and delivery powered by Uber Direct; Custom integration preserves team member and guest experience, while growing first-party delivery demand

ORLANDO, Fla. and SAN FRANCISCO, Sept. 19, 2024 /PRNewswire/ -- Darden Restaurants, Inc., (NYSE: DRI) and Uber Technologies, Inc. (NYSE: UBER) have entered into an exclusive multi-year delivery partnership, set to begin with Olive Garden in late 2024. The agreement will enable restaurant guests to order on-demand delivery via Darden restaurant channels, with delivery handled by Uber Direct, through Uber's national delivery network.

An initial pilot of first-party delivery from a limited number of Olive Garden locations will begin in late 2024. Upon the completion of a successful pilot, national expansion at Olive Garden is expected to be complete by May 2025.

Once live, guests will be able to order delivery through Olive Garden's website and app at more than 900 company-owned locations across the U.S., giving Olive Garden fans access to stress-free delivery while guest data and insights will remain with Olive Garden. Uber Direct, which enables merchants to tap into Uber's delivery technology and logistics network, will power deliveries enabling couriers to bring guests their Olive Garden favorites at home.

"Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience," said Rick Cardenas, Darden President and CEO. "As we continued to evaluate delivery, it was important for us to find a way to address this guest need state without disrupting the team member or guest experience and without compromising our competitive advantages and simple operating model. Uber is a partner we believe shares that vision and can meet our expectations. Their investment in a custom-integration, commitment to Olive Garden's first-party delivery growth, and efficiency and speed at a national scale, made this exclusive partnership a clear choice."

"We're excited to announce this partnership and look forward to bringing guests the excellent, convenient and reliable experience that is foundational to both of our brands," said Sarfraz Maredia, Vice President of Delivery, Head of Americas at Uber Eats. "On-demand delivery is increasingly a core expectation for consumers. People also expect a great experience, especially when it's from a brand they love like Olive Garden, and that doesn't change whether it's at the restaurant or at home. We're confident our teams can deliver on that promise together and continue to grow first-party delivery as a channel."

About Darden

Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V's and Bahama Breeze. For more information, please visit www.darden.com.

About Uber

Uber's mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 52 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

Media Contact: Rich Jeffers,
rjeffers@darden.com

View original content:https://www.prnewswire.com/news-releases/darden-and-uber-partner-to-introduce-on-demand-delivery-with-olive-garden-the-first-to-pilot-302252566.html

SOURCE Darden Restaurants, Inc.: Financial

FAQ

When will Olive Garden start offering delivery through Uber?

Olive Garden will begin a pilot program for delivery through Uber in late 2024, with national expansion expected to be complete by May 2025.

How will customers order Olive Garden delivery under the new Uber partnership?

Customers will be able to order delivery through Olive Garden's own website and app, with deliveries powered by Uber Direct.

How many Olive Garden locations will offer delivery through the Darden-Uber partnership?

The delivery service is expected to be available at more than 900 company-owned Olive Garden locations across the United States.

Will Darden Restaurants (DRI) expand the Uber delivery partnership to other brands?

The press release only mentions Olive Garden, but as it's described as a multi-year partnership with Darden, there's potential for expansion to other Darden brands in the future.