Jimmy John’s, the private-equity-owned sandwich chain, will partner with food-delivery specialist DoorDash in an effort to expand its customer base and improve its delivery system, according to media reports.
DoorDash, San Francisco, said on Wednesday that Jimmy John’s restaurants across the U.S. will be added to its delivery website, according to CNBC.
Jimmy John’s, Champaign, Ill., said that it would continue to deliver its own orders.
In February, the chain said it would never authorize third-party-delivery companies to deliver its orders.
The Jimmy Johns deal comes after DoorDash unveiled a new self-delivery service, which enables merchants to fulfill their own orders but benefit from the reach of the DoorDash app, according to CNBC.
The partnership is doing a pilot test with 100 restaurants over six months before making it a permanent chainwide deal, according to CNBC.
As part of the deal, Jimmy John’s will join DoorDash’s subscription program, which offers unlimited free delivery fees to paying members. The program had more than five million subscribers, as of September.
Jimmy Johns is held by Inspire Brands, which also owns and franchises Arby's, Buffalo Wild Wings and other restaurants. At the end of October, Inspire said it definitively agreed to acquire Dunkin' Brands, (DNKN) - Get Report owner of Dunkin' Donuts and Baskin-Robbins ice cream.
In turn, Inspire is a portfolio company of the Atlanta private-equity firm Roark Capital.
On Monday, the food delivery giant said it was looking to raise as much as $2.8 billion in an initial public offering, according to a regulatory filing.
The company said in a Monday filing with the Securities and Exchange Commission that it planned to sell 33 million shares for $75 to $85 each.
The company is targeting a valuation of $25 billion to $28 billion on a fully diluted basis, excluding the proceeds expected after the IPO, The Wall Street Journal reported.
DoorDash commanded around a near 50% share of the U.S. food delivery market in September, according to Second Measure research, well ahead of Uber Technologies' Uber Eats (22%) and GrubHub (20%).