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RetailMcDonald's

This fast-food giant is testing a delivery service

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
May 6, 2015, 4:12 PM ET
Photograph by Mark Duncan — AP
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McDonald’s (MCD) has started testing a delivery service in New York, according to the Associated Press.

The AP placed an order Wednesday for two cheeseburgers, two large fries, and a vanilla shake. It arrived after “about a half-hour.” The price tag? $23.32, according to the article. The AP continued:

The world’s biggest burger chain said Monday that it was starting the test and teaming up with Postmates, a service that is also working with Chipotle and Starbucks. It’s the latest sign that fast-food chains are eager to figure out ways to feed customer demands for greater convenience.

The move comes as competitors such as Burger King are entering the delivery market, according to the AP: “Others are experimenting with quicker takeout: Taco Bell lets customers order and pay in advance on its mobile app, and Starbucks said it plans to offer mobile pay-ahead later this year.”

But convenience does come with a price: “Postmates’ delivery fees range from $5 to $20, depending on the distance, said April Conyers, a Postmates representative. There’s also a 9 percent service fee, and the tip,” the news service said.

News of the delivery service comes as McDonald’s plans to restructure its business in the face of declining sales.

As Fortune’s Phil Wahba reported last month, McDonald’s is closing hundreds of stores this year as part of its restructuring plan.
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By Benjamin SnyderManaging Editor
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Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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