Please ensure Javascript is enabled for purposes of website accessibility

Domino's Pizza Launches Robotic Deliveries in Houston

By Rhian Hunt - Apr 12, 2021 at 11:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The news comes shortly after another major fast-casual chain invested in delivery robotics.

Domino's Pizza (DPZ -1.69%), the pizza restaurant described by management as "an e-commerce company that sells pizza," announced the rollout of robotic delivery services today. Testing of the new service will take place in Houston, Texas, specifically in the Woodland Heights neighborhood. The robots used are R2 autonomous delivery vehicles, produced by privately held California-based Nuro.

According to Monday morning's announcement, pizza-hungry diners in the Texas neighborhood can place a prepaid order which the R2 robot will then bring to their home. Text alerts track the machine's movements, and once it arrives, the customers can retrieve their food by entering a PIN on the R2's touchscreen.

A Domiino's-branded Nuro R2 delivery robot parked at the curb in front of a colorful Houston sign.

Image source: Domino's.

Dennis Maloney, the same executive who described Domino's as an e-commerce company years ago, said in the statement the "growing demand for great-tasting pizza creates the need for more deliveries." He also noted the test of the Nuro R2 starting this week will enable the company to study "how customers respond to the deliveries, how they interact with the robot and how it affects store operations."

Domino's, like several other restaurant chains easily capable of switching to a delivery model, made significant gains during 2020's COVID-19 lockdowns, with its market share climbing to 37% compared to 29% five years ago. As companies struggle with mounting delivery costs and home food delivery demand skyrockets, Domino's may hope robotic couriers will help it control its expenses.

Another restaurant chain that strengthened its position during the pandemic, Chipotle Mexican Grill, also recently expressed interest in Nuro's R2. The Mexican-style fast-casual restaurant invested directly in Nuro several weeks ago as part of its effort to provide cutting-edge digitally powered service.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Domino's Pizza, Inc. Stock Quote
Domino's Pizza, Inc.
$396.80 (-1.69%) $-6.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.