DoorDash has acquired the UK-based delivery service Deliveroo for $3.9 billion. It’s a big deal that will significantly expand DoorDash’s global footprint, which is why it has overshadowed a second acquisition that DoorDash made at the same time — the approximately $1.2 billion purchase of hospitality technology company SevenRooms.
The Deliveroo deal represents a big win for DoorDash in its core business of delivery, but the SevenRooms deal is equally significant because it offers a peek at where DoorDash is looking to grow its business next.
DoorDash Builds Out its White-Label Tech Offering
SevenRooms offers a suite of marketing, operations and guest experience tools for restaurants, hotels and hospitality businesses, all of which integrate into its customer relationship platform (CRM). Among the tools it provides are reservations, waitlist and table management, review aggregation, revenue management, referrals, email and text marketing, and marketing automation.
The company has 13,000 hospitality clients, among them some of the biggest names in the sector, including Marriott International, MGM Resorts International, Wynn Resorts, Hard Rock Hotels & Resorts, Wolfgang Puck, Union Square Hospitality Group, Nobu Restaurants and Live Nation.
Advertisement
That’s a heavy-hitting new client pool for DoorDash’s relatively new Commerce Platform division, which offers white-label solutions to help merchants grow their business such as branded apps and websites and business management software. The move is similar to that made by a number of other retailers — including Walmart, ThredUp, GoPuff and, most notably for DoorDash, its competitor Instacart — to package their logistics and technology expertise and offer them as white-label services to brands.
“We’re enhancing the DoorDash Commerce Platform to help merchants serve their customers across all channels,” said Parisa Sadrzadeh, VP of Strategy and Operations at DoorDash in a statement. “With SevenRooms, we’re excited to give local businesses around the globe new ways to bring more guests in the door, build and grow direct relationships with their customers, access best-in-class CRM and drive profitability through smarter marketing.”
Additionally, by moving deeper into the hospitality industry, DoorDash amplifies its mission to act as an enabler of all forms of local commerce, not just food delivery.
“We believe restaurants are the fabric of local communities, and through every table touch, welcome back and raised glass, our focus has always been on helping them grow while making their guests feel at home,” said Joel Montaniel, Co-founder and CEO of SevenRooms in a statement. “We’re excited to embark on this next chapter with DoorDash — delivering greater innovation, a direct channel to a network of millions of DoorDash consumers, more personalized guest relationships and elevated experiences that transform first-time diners into loyal regulars. Together, we’re equipping restaurants with the tools to own the guest experience, grow their customer base and thrive in an omnichannel world — inside and outside of the merchant’s four walls.”
With Deliveroo Acquisition, DoorDash Now Reaches 1 Billion+ Consumers
DoorDash has acquired the London-based delivery firm Deliveroo for £2.9 billion ($3.9 billion) in a bid to strengthen its global position as a “local commerce” platform. The acquisition price values Deliveroo at £2.4 billion ($3.2 billion) and represents an approximately 40% premium on the three-month weighted average of Deliveroo shares.
Founded in 2013, Deliveroo currently serves 7 million monthly active customers and 176,000 restaurants, grocers and retail partners across nine countries: Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the UK. The company is publicly traded on the London Stock Exchange under the symbol ROO.
Also founded in 2013, DoorDash is already present in more than 30 countries and partners with 500,000 local businesses to serve more than 42 million monthly active users. All nine of Deliveroo’s markets are new for DoorDash, and once combined, the companies will together reach more than 40 countries with a total population of more than 1 billion people.
“Our mission at DoorDash is to grow and empower local economies,” said Tony Xu, CEO and Co-founder of DoorDash in a statement. “Coming together with teams that have similar visions and values accelerates our work to achieve that mission. Deliveroo is just such a team and one that I have long admired. The enlarged group will bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise to invest in innovation and execution at an even higher level.”
“DoorDash and Deliveroo are like-minded organizations with a shared strategic vision and aligned values,” added Will Shu, CEO and Co-founder of Deliveroo in a statement. “Together, we will be even better positioned to serve consumers, merchants, riders and local communities. The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition.”
