Waze and Dunkin Donuts Partner for Mobile Order & Pay

by Raymond Pucci 0

Don’t panic if you’re having trouble finding the closest cup of Joe in the morning. Waze and Dunkin’ Donuts have come to the rescue by partnering their mobile apps. As the following article explains, the Waze app has added a mobile order and pay feature that enables users not only to get traffic guidance but also to purchase Dunkin’ food and drink as well.

Waze’s traffic navigation app already shows ads prodding drivers to swing by fast-food joints like Dunkin’ Donuts and Taco Bell. Now it’s adding a new item to its menu — the ability to place orders at some shops. On Tuesday, the Google-owned app will start letting drivers purchase coffee and other items from Dunkin’ Donuts for pickup along their way. It’s the first time that Waze has offered this kind of “order ahead” option, but unlikely to be the last.

If all goes well with the Dunkin’ Donuts test, Waze plans to team up with other merchants so its millions of users can order pizza, reserve parking spaces, fill prescriptions and even buy groceries without having to open another app on their phones. “It could be almost anything that a driver could order ahead and have ready for pickup,” said Jordan Grossman, head of Waze’s business partnerships in North America.

Dunkin’ Donuts has its own app, which until now was the only way to order ahead at the chain’s stores . But working with Waze made sense, said Scott Hudler, chief digital officer for Dunkin’ Brands. “Waze involves the ritualistic behavior of driving to work on your daily commute, and we are a brand built on a ritual too,” he said. Drivers using Waze’s “order ahead” option will need the Dunkin’ Donuts app as well, although they won’t have to open it. They’ll also need to be registered with Dunkin’ Donuts customer loyalty program. The push into e-commerce is Waze’s latest step beyond its original purpose of recommending the fastest way to drive someplace.

Rush-hour crazed commuters value both their time and coffee, so it’s no surprise that this Waze-Dunkin’ partnership seems like a no-brainer. However, the significance of the deal is that it demonstrates that vast opportunity that mobile order and pay apps offer in the on-demand economy. Quick service restaurants (QSRs) and casual dining have been the main beneficiaries of mobile ordering, but additional leverage comes when they cross-sell with ride-sharing or delivery services. That’s why Uber and Amazon have also begun to find restaurant partners. Watch this mobile order ahead space as it grows exponentially and becomes a major revenue stream for QSRs and others by 2020.

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

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