McDonald's gets in the game with mobile order and pay

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McDonald's announced on Wednesday a plan to create a phone app that allows users to order their food and then pick it up curbside, MSN Money reported.

While home delivery is already available in China, South Korea and Singapore, the report hints that the service will roll out in the company's top five markets, where 75 percent of the population lives within three miles (5 km) of a McDonald's restaurant.

It believes that because of its "extraordinary footprint" around the globe the company is, "uniquely positioned to become the global leader in delivery". Aside from this, McDonald's also plans to make ordering more convenient by having kiosks recognize a customer's app profile, which can access customized favorites and preferred payment methods.

McDonald's already delivers in some overseas markets like China, South Korea and Singapore, and its delivery sales were close to $1 billion a year ago.

"We've lost hundreds of millions of visits from our core customers", said Lucy Brady, McDonald's chief strategy officer.

In a statement released on their website, the company state: "One of the most significant disruptions in the restaurant business today is the rapid increase in delivery". So even if people are still going to McDonald's, they may be going less often than they used to. The company also mentioned GrubHub as a potential partner, but didn't offer specifics on how delivery will work for customers.

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The mobile feature will be launched in 20,000 restaurants in some of McDonald's biggest markets by the end of this year.

McDonald's, a member of the Dow Jones industrial average, said at its 2017 investor meeting that it is testing or exploring deliveries with third-parties such as UberEats and GrubHub (GRUB). McDonald's told investors that it will roll out mobile ordering, mobile pay and curbside pickup at its 14,000 USA restaurants by the end of 2017.

If customers choose curbside service, they would park in a designated slot, and their order would be brought to the auto.

The fast food giant is now banking on giving its service some digital upgrade in order to dramatically enhance customer service.

Shares rose 1.4% to $129.40 after McDonald's unveiled its plan.

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