Chipotle Mexican Grill has tied up with Uber Eats as its delivery partner in Canada. The corona crisis has taken the world by a storm. There is hardly any company that has not been affected in some way or the other. As such, CMG is testing its waters and doing all it can to negate the harmful downturns of the virus-induced slowdown.
Announcing a delivery partnership in Canada, Chipotle and Uber Eats are all set to drive the business together in full swing. Within hours of this union getting in the news, the company’s shares gained 3.3 percent on May 14. This partnership will ensure faster deliveries and sustained union between the two giants of the online food sector.
This surge is nothing new. The company has tended to show an upward trend despite the slump in the economy when seen overall. For instance, Chipotle’s shares have increased by 23.5 percent at such a difficult time when the industry saw an abysmal decline of 10.8 percent.
Chris Brandt, Chief Marketing Officer, stated that the company strived to find ways to make the optimum utilization through any engagement with key partners. He expressed his faith that the bond will help grow its delivery footprint in the case of Canadian customers. This partnering has a lot in store for both the big brands.
Whereas Uber gets to be the delivery partner and food is ordered through the UberEats app and ubereats.com, Chipotle gains through smooth operations and market image. It is a win-win situation for both the companies when just performing well is not enough, not in Canada, not anywhere else.
Chipotle has simplified and rebooted its online ordering platform to enhance its sales. The company has strengthened online payment to enable greater efficiency in catering through apt customizations of an online meal. In addition to all this, the company has also tied up with several popular third-party providers of delivery services.
This partnership aims to enhance the delivery experience for the buyers to forge a sustainable relationship with the customer. The company has its increased focus on the e-commerce platform. E-commerce is the sole present and could potentially be the sole breadwinner for food outlets and restaurants.
Therefore, it makes sense to make the digitization more appealing to the users. Only when there is a more efficient functioning in its restaurants will Chipotle strengthen its footholds in the online sphere. The digitization needs the backing of the physical infrastructure most of all.
As the dine-in facility has been restricted, the company worked with renewed vigor to gain from its online channels. This effort represented its output as 37.6 percent of the total sales. Digital sales had accounted for 26.3 percent of total sales in the first quarter of the current year. Earlier, Chipotle Mexican Grill, Inc. had also started its popular delivery partnership with Uber Eats in the United States in its first quarter.
Other than redesigning of digital platforms, the company has given impetus to incentives. Chipotle’s rewards program has been one of the major drivers of growth as per this route. At this time, Chipotle’s rewards program has more than 11.5 million members enrolled in it. Hopefully, the partnership with Uber Eats will add more feathers to Chipotle’s cap!