Subway partners with Postmates, Grubhub to offer food delivery to 9,000 US locations
By creating partnerships with Postmates, Uber Eats, GrubHub, and DoorDash, the world’s largest sandwich chain hopes to tap into a bigger consumer base.
Subway has franchises in nearly 26,0000 US locations and so the firm hopes that a new delivery offering will help to strengthen sales.
“We’ve been testing delivery with Subway for quite some time. In fact, we’ve delivered 43 miles of subs – that’s 221,000 pounds of sandwiches to hungry third-party users,” said Dan Mosher, SVP, Merchant Lead Postmates.
“This official partnership enables them to bring on-demand delivery to more customers faster, delivering their favourite subs right to their door.”
In recent years, Subway has embarked on a handful of initiatives to boost profitability for its franchisees.
These include relocating restaurants to better sites modernising tires and adding new ingredients to regional menus.
Michael Lang, Senior Director of Global Convenience at Subway, added: “We’re committed to providing a world-class guest experience both in-restaurant and in-home by offering guests delivery options.
“Our delivery partnerships demonstrate our commitment to give customers more of what they want while driving restaurant profitability for our franchise owners.”
Tapping into the growing delivery market, more restaurants are increasingly turning to third-party logistics companies to deliver their food to customers.
Earlier this year, Yum! Brands Inc. agreed to buy a $200mn stake in GrubHub.
Chipotle Mexican Grill also recently launched delivery in partnership with DoorDash, through its mobile app and website.
In the last five years, revenue from food deliveries has jumped 20% and the overall number of deliveries increased by 10%, according to data from the NPD Group.