Shake Shack goes exclusive with Uber Eats for delivery service
The "roadside" burger stand Shake Shack (SHAK) aims to cater to consumers at home with a new, exclusive UberEats (UBER) partnership.
On Tuesday, the burger chain announced its plan to roll out its own delivery service on its Apple iOS app. Shake Shack is boosting its profile in an increasingly crowded field, where fast food companies are racing to leverage digital orders to cultivate customer loyalty.
Customers can now order directly on the Shack App, and view tracking of their order in real-time. Each order comes with a $0.99 flat delivery fee — and none at all for orders over $35.
In a recent interview, Shake Shack CEO Randy Garutti told Yahoo Finance UberEats was the ideal delivery partner thanks to "the ability to customize the experience for our guests, and for their strong courier coverage in our key markets."
Shack Shack opened back in 2004 in NYC’s Madison Square Park, and has since expanded to more than 310 locations in 30 U.S. States and the District of Columbia, including more than 120 international locations including London, Hong Kong and more.
The chain, however, saw a drag from COVID-19 lockdowns last year. In the company's fourth-quarter earnings report, full-year 'same-Shack sales' saw a steep 27.8% plunge, hurt by restrictions that kept diners out.
Yet Garutti is optimistic that more digital innovation — such as the special deals being offered by McDonald's (MCD), Burger King, Chipotle (CMD) and other fast food giants via their respective apps — will help lure more diners.
"A winning guest experience is reliant on best-in-class digital products and tools, and we’ll continue to invest there," Garutti said.
"As we look to the future, we’ll continue to further our digital transformation, meeting our guests where they are, on their terms, while staying committed to the values Shake Shack has also stood," he added.
In 2020, the company announced its digital pre-ordering and fulfillment experience Shack Track to reach customers during the coronavirus pandemic. According to its Q4 earnings release, that includes equipping both new and existing locations with digital pre-order and pickup, contact-free pickup, and drive-up lanes.
As of February 17th, 2021, digital sales are up 63% compared to year prior. Shake Shack’s app and web sales also grew 3.5 times year-over-year and through January 2021.
Shares of Shake Shack closed at $122.74 per a share on Tuesday, while shares of the fast food chain are up more than 235% from a year ago. Shares of Uber closed at $58.85 per a share on Tuesday, with shares up more than 166% year-over-year.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma
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