BOSTON & SAN FRANCISCO - Toast Inc. (NYSE: NYSE:TOST), a comprehensive restaurant technology platform, and Uber Technologies Inc . (NYSE: NYSE:UBER), a global mobility and delivery provider, have announced an extension of their collaboration aimed at enhancing delivery options for U.S. restaurants. The expanded partnership integrates Toast Delivery Services with Uber Direct, allowing eateries to utilize Uber's vast delivery network for orders placed via Toast's various digital ordering channels.
Since their initial partnership in 2021, Toast and Uber have worked together to facilitate orders through the Uber Eats app. The latest development promises to help restaurants reduce delivery costs and widen their delivery areas. Restaurants can now leverage Uber Direct for commission-free deliveries at a flat fee per order, a move that is expected to bolster their margins. This initiative comes as Toast demonstrates strong market momentum, with its stock price showing a remarkable year-to-date return of 108.87%.
Kelly Esten, Toast's Chief Marketing Officer, expressed excitement over the partnership, highlighting the potential for restaurants to reach a broader customer base and enjoy reliable delivery services. Similarly, Brandi Villarreal, Head of Online Food Delivery at Uber Direct, commented on the strategic advantage for restaurants in providing a seamless delivery experience through multiple channels, including their own websites and apps.
The collaboration has already shown positive results for some, such as Over Easy, a breakfast chain that has benefited from the integration by offering more affordable and efficient delivery services to its customers.
Toast, known for its all-in-one digital platform for restaurant management, continues to serve as a crucial operating system for the industry, connecting various aspects of restaurant operations. Uber Direct, launched in 2020, extends Uber's mission to enable movement by offering on-demand local delivery solutions for businesses.
This announcement contains forward-looking statements regarding the anticipated benefits of the partnership, which are subject to risks, uncertainties, and other factors. Toast's filings with the SEC provide further details on potential risks. For investors seeking deeper insights, InvestingPro offers 13 additional exclusive ProTips and comprehensive analysis of Toast's financial metrics, including detailed profitability and growth indicators, available through the platform's Pro Research Report.
The information in this article is based on a press release statement.
In other recent news, Toast Inc. has been the focus of multiple analyst adjustments and revisions following its third-quarter earnings report. DA Davidson downgraded the company's stock from Buy to Neutral and revised the price target to $38.00. The firm cited concerns over margin expansion expectations for 2025, which were shared by Toast's management at a recent investment conference.
Despite the downgrade, DA Davidson acknowledged Toast's strategic efforts in positioning itself as a future leader in integrated software and payment solutions for the restaurant and retail sectors. The company has shown strong revenue growth of 29.5% in the last twelve months and maintains a modest gross profit margin of 23.36%.
Baird maintained its Neutral rating on Toast, holding steady with a price target of $38.00. This decision came after Toast's CFO presented new guidance on future margins, which fell significantly short of industry expectations. Goldman Sachs also adjusted its stance on Toast, downgrading the stock from Buy to Neutral but increasing the price target to $45.00.
These recent developments reflect a series of financial adjustments and highlight the company's ongoing strategic efforts to expand its offerings and improve its financial metrics. Investors are advised to pay close attention to Toast's future financial disclosures and management commentary to gauge the company's progress toward its stated goals.
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