Reports indicate that McDonald’s Corporation (NYSE:MCD) is rolling out the testing of a delivery service in some select cities. The pilot phase of the delivery service will initially take place in Tampa, Orlando, and Miami in January next year. 200 McDonald’s stores will be involved in the testing phase.
Expensive delivery services
At present, McDonald’s already has a delivery service arrangement with DoorDash and Postmates. The delivery and services are however pricier for larger orders compared to UberEATS which only charges $5.
The testing of the delivery services comes in the wake of efforts by McDonald to provide a mobile ordering feature. This will see customers ordering and paying for food from their mobile devices. The rollout of the mobile ordering technology will begin in the United States and other big markets such as the United Kingdom, France, Canada and Australia. The mobile ordering feature is expected to be rolled out to more restaurants all over the world by 2018 with an initial target of between 20,000 and 25,000.
Ordering and paying using a mobile phone
Firms such as Chick-fil-A, Domino’s Pizza, Inc. (NYSE:DPZ), Taco Bell and Starbucks Corporation (NASDAQ:SBUX) already have such a system in place which has been described as being widely successful because it has spurred sales and also increased engagement with customers. The system reduces the wait times that customers have to endure. It also improves order accuracy. This is important for McDonald’s as a huge part of its business is centered on drive-thru sales, which means that convenience would be greatly appreciated by its customers. McDonald’s has also been struggling in attracting millennials and catching up with rivals in digital offerings will help in that regard.
In Friday’s trading session, McDonald’s shares rose by 0.72% to close the day at $123.24.