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Does Domino’s Pizza Inc. (DPZ) Need More Fuel To Drive?

Dominos Pizza (DPZ) began testing pizza delivery by an autonomous vehicle in Houston, Texas. In the past, Domino’s Pizza announced its intention to advance in automated delivery robots. Ford was the DPZ stock’s partner in this area earlier. Deliveries are now going to be made using R2 robots developed by California startup Nuro.

The robotic vehicle can travel on public roads and is geared to haul food compartments. Pizza can be ordered online, paid for, and delivered to the customer’s house by the R2 robot. A customer must enter a PIN before receiving their order on the R2 touchscreen when the robot reaches its destination.

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At this time, Domino’s Pizza (DPZ) will only be launching delivery robots in Houston’s select areas. The geography of testing is likely to expand if the experience is successful. Demand for impersonal delivery is expected to continue in the coming quarters even as the pandemic subsides. Therefore, Domino’s Pizza’s delivery service becomes apparent at the right time. Plus, pizza, one of the most popular fast food to order at home, is currently in high demand.

Domino’s Pizza will evaluate how customers respond to Nuro’s R2 robot deliveries and interact with the robot. The pizza chains network will also analyze how deliveries by robots will affect sales dynamics.

Domino’s Pizza was able to make significant progress during COVID-19 and forced isolation. So, the DPZ stock’s market share has grown to 37 % on the US market. There is an 8% increase from five years ago. Due to higher costs of paying couriers, it’s assumed that Domino’s Pizza will optimize costs through delivery by robots.

During the trading session on Tuesday, Domino’s Pizza (DPZ) gained 1.10%, reaching a low of $391.08 and ending the day at $397.33. The trading session witnessed a volume of 0.49 million shares, representing a 24.33% decrease over average session volume, 651.32K shares. At the end of the last trading session, DPZ closed at $394.93.


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