McDonald's Corp. (NYSE:MCD) and Uber Technologies Inc. (NYSE:UBER) said Monday they're expanding their global partnership in a multiyear deal aimed at improving food delivery and loyalty rewards across 14 markets. Think of it as a relationship that started with a handshake in 2017 and now has a shared calendar.
The agreement covers the U.S., Australia, Belgium, Canada, France, Germany, Ireland, the Netherlands, New Zealand, Poland, Portugal, Spain, Switzerland and the U.K. That's a lot of countries, and a lot of fries in transit.
The companies first partnered in 2017. Since then, McDonald's has expanded its presence on Uber Eats to 30 countries. The new deal goes further: McDonald's will prioritize Uber over DoorDash, Inc. (NASDAQ:DASH) to fulfill orders placed on its own app in 14 countries, according to Bloomberg.
Uber Becomes the Preferred Delivery Partner
Under the expanded agreement, Uber will become McDonald's preferred delivery partner for orders placed through the restaurant chain's app in participating markets. Those include the U.S., Australia, Canada, France, Germany and the U.K.
Customers will be able to place and track delivery orders without leaving the McDonald's app. They can also continue ordering through Uber Eats, because old habits die hard and convenience is king.
Uber will primarily fulfill orders through Uber Direct, its delivery service for businesses, in partnership with Deliverect. The integration aims to simplify ordering and improve delivery reliability as McDonald's expands its digital business. In plain English: fewer app-switching gymnastics, more predictable arrival times.
Loyalty Rewards Expand to Uber Rides
Uber will also become McDonald's exclusive delivery and rideshare rewards partner in participating markets. Starting in November, MyMcDonald's Rewards members in select markets can redeem loyalty points for Uber ride discounts through a seasonal promotion.
Additionally, the companies plan to let customers earn rewards points on eligible Uber Eats orders. Customers could then redeem those points for benefits through the McDonald's app, including Uber ride offers. So your Big Mac habit could eventually help pay for the ride home, which is either brilliant or dangerous depending on your willpower.
McDonald's Senior Vice President of Global Franchising and Delivery Mason Smoot said McDelivery generates more than $20 billion annually, reflecting growing demand for convenient ordering options. That's a big number, and it explains why the delivery lane has become a strategic battleground rather than an afterthought.
Uber President and Chief Operating Officer Andrew Macdonald described the agreement as the companies' broadest partnership expansion since 2017. The deal combines Uber's delivery and transportation networks with McDonald's digital ordering and loyalty programs, which is a fancy way of saying the two companies are now intertwined in more places and more ways.
McDonald's operates more than 46,000 restaurants across over 100 countries, with roughly 95% run by independent local operators. That franchise-heavy structure means any global delivery deal has to work for a lot of local owners, not just a corporate spreadsheet.
Price Action: Uber Technologies shares were up 1.43% at $69.56 and McDonald's shares were up 1.37% at $280.31 at the time of publication on Monday, according to market data. Investors, it seems, like the smell of a broader partnership in the morning.