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McDonald's Partners With Grubhub To Expand McDelivery In NYC

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McDonald's USA has teamed with Grubhub, an online and mobile food-ordering and delivery marketplace, to expand its delivery service McDelivery to about 500 restaurants in the New York City and Tri-State Area.

The delivery of McDonald's food products will be available on the Grubhub marketplace and its New York brand, Seamless. McDelivery, which was launched in the U.S. in 2017, has been available to McDonald's customers in the NYC and Tri-State area for the past two years.

The new partnership will include a direct point-of-sale or POS integration. Under this integration, Grubhub's innovative "Just in Time" technology will allow restaurant operators to match order fulfillment with driver pickup.

McDonald's already has partnership with Uber Eats for McDelivery at more than 5,000 US restaurants. McDonald's expects its delivery business to be worth around $4 billion in 2019 for the company as well as its franchise restaurants around the world.

The fast food giant last year had announced its plans to invest $6 billion to modernize most U.S. restaurants by 2020.

Grubhub, which is the most comprehensive network of restaurant partners, currently works with more than 125,000 restaurant partners in over 2,400 U.S. cities and London.

As the competition among food providers intensifies, more companies are strengthening and expanding their delivery business to grab the market share.

According to an earlier analysis done by Statista, the global online food delivery market represents a $95 billion opportunity, and is projected to grow by more than 11 percent annually through 2023.

Earlier this year, Pizza Hut, a subsidiary of Yum! Brands Inc., had expanded its beer delivery program to nearly 300 restaurants. Starbucks Coffee Co., in partnership with Uber Eats, also expanded its "Starbucks Delivers" pilot to more cities across the U.S.

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