Monday, 22 April, 2019

Acquisition to allow McDonald's to personalise digital displays

McDonald's tested Dynamic Yield's technology in the US in 2018 and will more widely introduce it this year for drive-thru menus once the deal closes McDonald's buys Israeli AI co Dynamic Yield for $300m
Wayne Curry | 29 March, 2019, 06:56

That goal is behind the fast-food giant's move this week to fork out more than $300 million to buy Israeli technology company Dynamic Yield, its biggest acquisition in 20 years. It would enable the fast-food chain to customise the electronic menu boards' display of items, depending upon various factors such as weather, regional preferences and the time of day, mentioned the daily.

Additionally, the decision technology can also suggest additional items to add to a customer's order based on their current selections.

McDonald's said it plans to roll out this technology this year in US after testing it in several markets last year. Upon acquisition, McDonald's will roll it out at its drive-through locations in the U.S. this year before expanding it overseas.

McDonald's will also begin work to integrate the technology into its self-order kiosks and its Global Mobile App, the statement said.

The acquisition will inject technology into multiple areas of the traditional fast food restaurant, starting with a core feature: the drive-thru.

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With that goal still at the forefront of its business model and brand, the company is increasingly looking to new technologies to enhance its service for the digital age, and that's manifested itself in the estimated US$300 million purchase of Dynamic Yield.

In the world of restaurants, data can help owners understand and build interesting solutions that not only provide a better experience to customers but also create smarter and more intelligent ways to engage with them. Dynamic Yield's algorithms can gather data about customers on behalf of companies to generate Amazon-like recommendations, among other things.

Dynamic Yield was founded in 2011 by CEO Liad Agmon and CTO Omri Mendellevich and raised $32 million last August, bringing the total funds raised to $83 million, according to Crunchbase. Many of those people never get out of their vehicle, opting instead to place and pick up their orders at the drive-thru window.

McDonald's even plans to include the AI in the self-order kiosks and the mobile app. It's said that one in eight Americans have worked at the company, which is perhaps one of the reasons 2020 Democratic Presidential candidate Andrew Yang is pushing for a universal basic income. Worldwide markets will follow.

Dynamic Yield is going to remain a standalone company upon the closing of the deal.

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