U.S. DoorDash on 5 bln USD buying spree after earnings beat
NEW YORK, May 6 (Xinhua) -- In a matter of five hours on Tuesday, the U.S. delivery firm DoorDash Inc. announced two multibillion-dollar acquisitions that stand to turn what is already the largest food-delivery service in the United States into a formidable global player.
It agreed to buy London-based delivery Deliveroo Plc for 180 pence per share, or about 3.9 billion U.S. dollars, and it's acquiring hospitality tech company SevenRooms Inc. for 1.2 billion dollars.
Alongside the deals, DoorDash also issued a strong orders outlook for the current quarter and posted better-than-expected gross order value for the first three months of the year in a statement on Tuesday.
"The company's buying spree highlights DoorDash's ambitions outside of the United States, where it already commands about two-thirds of the food-delivery market," reported Bloomberg News about the move. A takeover of Deliveroo will expand its reach to more than 40 countries. The two companies combined had a gross order value of about 90 billion dollars last year and have 50 million monthly active users.
The delivery industry has been consolidating after a slowdown from pandemic-level highs, leaving room for a dominant player like DoorDash to grow even larger, it added.
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