Uber Drops 3.65% as Domino's Shifts to DoorDash

On April 3, 2025, Uber Technologies experienced a 3.65% drop in pre-market trading, reflecting investor concerns over the company's strategic partnerships and market positioning.

One of the key factors contributing to this decline is the recent announcement that Domino's Pizza will start accepting orders through DoorDash, effectively ending its exclusive delivery partnership with Uber Eats in North America. This shift is expected to impact Uber's revenue streams, as Domino's had been a significant contributor to Uber Eats' sales. The new partnership with DoorDash is set to begin in May for the U.S. market and later this year for Canada, with Domino's dispatching its own drivers for deliveries.

Domino's decision to diversify its delivery options comes as it seeks to tap into new customer segments, particularly in suburban and rural areas where DoorDash has a stronger presence. This move underscores the competitive dynamics in the food delivery market, where companies are constantly vying for market share and customer loyalty. The termination of the exclusive agreement with Uber Eats, which had been in place since July 2023 and extended until May 1, 2025, highlights the evolving landscape of partnerships in the industry.