Olive Garden has announced a groundbreaking partnership with Uber for delivery services. Darden Restaurants, the parent company of Olive Garden, LongHorn Steakhouse, and other chains, revealed that Olive Garden will be the first brand to offer third-party delivery, facilitated by Uber Direct, a premium delivery service. Unlike other brands, Olive Garden will exclusively use Uber Direct for its deliveries, rather than utilizing the broader Uber Eats platform. The service is set to commence later this year, with plans to expand nationwide by May 2025 if successful.
The announcement led to a significant 7% surge in Darden’s shares during Thursday morning trading. This decision marks a shift in strategy for Darden, particularly for Olive Garden, as the company previously handled large catering orders in-house but had refrained from using third-party delivery for individual orders. Former Darden President and CEO Gene Lee had expressed reservations about third-party delivery during a 2018 conference call with investors, citing concerns about maintaining brand integrity and data security.
Despite past hesitations, current Darden President and CEO Rick Cardenas acknowledged the demand for home delivery options from customers and the willingness to pay for convenience. Cardenas assured that the delivery process would not disrupt staff or restaurant operations, with orders being managed similarly to take-out orders, brought out to waiting drivers curbside. Olive Garden has implemented technology to assist staff in handling increased order volumes efficiently.
Darden’s move to embrace third-party delivery follows a trend in the industry, with other chains like Domino’s Pizza also eventually partnering with services like Uber Eats. By collaborating with Uber for delivery services, Darden aims to meet customer demands for convenience while maintaining operational efficiency and brand standards.