Market Overview

Domino's Next-Gen Delivery Vehicle Could Revolutionize Pizza

Domino's Next-Gen Delivery Vehicle Could Revolutionize Pizza
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Cold delivered pizza could soon be a thing of the past with Domino’s Pizza Inc (NYSE: DPZ)'s new DXP, “delivery expert,” cars hitting the road later this year. In addition to featuring a pizza warmer accessible from the outside of the car, the DXP vehicles will also be equipped with extra-large cup holders and added storage space, according to Belus Capital Advisors' Brian Sozzi, writing for TheStreet.

The DXP Fleet

By early fall 2015, Domino’s expects to have 120 DXPs ready for action at franchises across the country.

While the sticker price of the cars remains undisclosed, the DXP vehicles will have a body based on General Motors Co (NYSE: GM)'s Chevy Spark. Some of Domino’s bigger franchisers have already purchased up to 10 of the new delivery vehicles, Sozzi notes.

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Recipe For Success

Currently, Domino’s leads the market in pizza delivery, with a market share of 27.4 percent based on consumer spending. In the past year alone, Domino’s share prices have risen 34 percent, outperforming rivals Papa John's International Inc (NASDAQ: PZZA) and Yum! Brands Inc (NYSE: YUM)'s Pizza Hut, whose share prices have increased 25 percent and 5 percent, respectively.

Domino’s also leads the pack in same-store sales, which increased 7.4 percent in 2014.

Technical innovations such as the DXP have played a key role in driving Domino’s success.

Technical Innovators

About half of Domino’s sales ($4 billion annually) come from digital sources, with the majority of delivery orders now being placed online. Recently, Domino’s introduced the “Dom” voice assistant for ordering via devices such as Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s Android smartphones and Samsung Electronics Co Ltd (OTC: SSNLF) smart TVs.

Aimed at correcting inefficiencies in the pizza delivery process, the DXP represents Domino’s newest technical initiative, which has the potential to boost business in a new way through more reliable and timely pizza delivery.

Posted-In: Brian Sozzi Domino'sAnalyst Color Rumors Restaurants Events General Best of Benzinga


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