McDonald's Will Soon Offer Mobile Ordering and Pay
McDonald's will be the first huge fast-food chain in the U.S. to offer customers the ability to place their order through their smartphone.
The company plans to offer the mobile ordering and payment option at every one of its 14,000 U.S. locations during the last half of 2017. Analysts say this will beat out the competition and would be a major score for McDonald's.
Jeff Farmer is an analyst who said MCD is making a move to offer customers the ability to order food through their smartphone gives them a huge market share.
Farmer said Wendy's is liable to follow McDonald's suit, offering mobile ordering and pay in half of its locations by the close of 2017. Jack in the Box and Burger King are still testing their programs.
He said offering the service boosted the restaurant's valuation range from $125 to $130 to $145 to $150.
BI Intelligence believes mobile ordering will become a $38 billion industry by the year 2020. However, there are still problems with mobile ordering that need to be addressed. With more customers using the mobile ordering service, companies like Sweetgreen and Starbucks, have discovered they need to come up with solutions to deal with bottlenecks and crowds during their company's busiest hours.