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McDonald's partners with Just Eat for nationwide UK delivery service

Just Eat will deliver McDonald's' meals across the UK and Ireland from 2020. Photo: Getty

McDonald’s (MCD) is partnering with online ordering and food delivery company Just Eat (JE.L) to deliver Big Macs and McMuffins across the UK and Ireland.

Just Eat beat rival Deliveroo to become McDonald's “second exclusive partner” for their McDelivery service in Britain. The fast food giant launched its home delivery service with UberEats in 2017.

Deliveries are expected to get under way during 2020, according to Just Eat.

The win follows Just Eat’s recent £6bn ($7.8bn) acquisition by Amsterdam-based Takeaway.com (TKWY.AS) after a months-long battle with rival bidder Prosus (PRX.AS).

READ MORE: Takeaway.com has finally won its battle to acquire Just Eat for £5.9bn

Just Eat announced a similar delivery partnership with bakery Greggs (GRG.L) earlier this month and Just Eat’s interim CEO Peter Duffy said Tuesday that both deals would help “accelerate our growth”.

“We are delighted to announce that we have agreed to partner in the UK and Ireland with McDonald's,” Duffy said.

“This partnership, along with our recently announced relationship with Greggs, will require significant investment but will accelerate our growth ambitions and enhance our market position by offering our customers the widest choice available.”

In a trading update, Just Eat announced UK order growth of 8% last year, along with good momentum in Australia, Italy, and Switzerland and continued strong growth in Canada.

The company said it expected to report 2019 core earnings of about £200m, towards the top of its guidance range of £185m-£205m. It also forecast total revenue of approximately £1bn for 2019.

“We are pleased to confirm uEBITDA towards the top end and revenue broadly in line with the guidance range we provided at the start of 2019, notwithstanding the significant developments during the year,” Duffy said.

READ MORE: Greggs joins up with Just Eat for nationwide delivery rollout