Latest news with #DoorDashInc
Time of India
07-05-2025
- Business
- Time of India
DoorDash is on a $5 billion buying spree after earnings beat
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Live Events In a matter of five hours, the US delivery firm DoorDash Inc. announced two multibillion-dollar acquisitions that stand to turn what is already the largest food-delivery service in the US into a formidable global player. It agreed to buy London-based delivery Deliveroo Plc for 180 pence per share, or about £2.9 billion ($3.9 billion), and it's acquiring hospitality tech company SevenRooms Inc. for $1.2 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 company's buying spree highlights DoorDash's ambitions outside of the US, where it already commands about two-thirds of the food-delivery market. A takeover of Deliveroo will expand its reach to more than 40 countries, DoorDash said. The two companies combined had a gross order value of about $90 billion last year and have 50 million monthly active delivery industry has been consolidating after a slowdown from pandemic-level highs, leaving room for a dominant player like DoorDash to grow even larger. Also on Tuesday, Uber Technologies Inc. said it's buying an 85% controlling stake in the Turkish delivery app Trendyol Go. In February, Prosus NV agreed to buy Amsterdam's Just Eat NV, while billionaire Marc Lore's Wonder Group Inc. closed its acquisition of Chicago-based Grubhub earlier this year.'Our focus has always been build a great product, not just for consumers, but merchants as well as dashers and couriers,' said DoorDash Chief Financial Officer Ravi Inukonda. The deals provide 'an opportunity to invest across a broader set of countries and bring our product experience that got us to number one in the US as well as number one in all these countries into the delivery geographies as well.'DoorDash shares dropped 9.8% to $185.35 at 10:10 a.m. in New York, the biggest intraday decline in a year. The stock has gained 11% this year. Deliveroo rose 2% to 175.50 pence in acquisition of SevenRooms will give it a reservation platform and customer-management tool similar to OpenTable or Resy that works with more than 13,000 restaurant groups. Its clients include Marriott International Inc., MGM Resorts International and Wolfgang 2022, DoorDash worked with SevenRooms to pilot restaurant reservations within the DoorDash app in New York, Los Angeles and Chicago. In addition to restaurant delivery, DoorDash also offers white-label services to build ordering interfaces for restaurants' websites and phone answering Executive Officer Tony Xu said DoorDash's philosophy on deals hasn't changed. 'The bar continues to remain high for M&A,' he said in a call with analysts on Tuesday. 'Sometimes, the timing of some of these announcements aren't or can't be perfectly forecasted. But what I would say is it really is business as usual.'The Deliveroo deal is expected to close in the fourth quarter of 2025 while the all-cash SevenRooms purchase is expected to close in the second half of this year. Both transactions will require regulatory approvals, and in the case of Deliveroo, at least 75% of the company's shareholders will need to give their blessing. So far, investors representing 15.4% of Deliveroo's stock have agreed to sell their shares, including Chief Executive Officer Will acquisitions of Deliveroo and SevenRooms suggest the company is focused on boosting user growth in the UK and layering AI capabilities for its fragmented merchant base. Though delivery margins will likely remain lower for Deliveroo vs. DoorDash's existing markets, we believe the latter's technology and customer-relationship management capabilities could spur merchant supply growth and help it gain share in the splintered UK online delivery market.— Mandeep Singh, BI senior industry analystTo facilitate the Deliveroo deal, DoorDash is taking a $2.85 billion bridge loan from JPMorgan . It had about $4.5 billion in cash and cash equivalents at the end of the last quarter, according to earnings results that the company also issued the current period, DoorDash sees gross order value of $23.3 billion to $23.7 billion, it said in the statement, surpassing Wall Street projections. The company said the results show consumer demand 'remained strong' and that engagement has been 'consistent' across different cohorts so far this order value and the number of orders for the first quarter surpassed expectations, reaching record quarterly highs. DoorDash credited the beat to its continued push into non-restaurant deliveries. Specifically, it cited 'strong signs of increasing consumer trust' in the grocery category, with 'accelerating average spend per grocery consumer and increasing average spend on perishables' in the revenue for the quarter was $3 billion, just missing the average analyst estimate, while net income came in at $193 million, ahead of the investments to enter new categories and international markets, however, weighed on DoorDash's earnings forecast. Adjusted earnings before interest, taxes, depreciation and amortization will be $600 million to $650 million, with the midpoint missing the average estimate of $637.7 million.
The Star
06-05-2025
- Business
- The Star
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.
Yahoo
06-05-2025
- Business
- Yahoo
DoorDash Is on a $5 Billion Buying Spree Following Earnings Beat
(Bloomberg) — In a matter of five hours, the US delivery firm DoorDash Inc. (DASH) announced two multibillion-dollar acquisitions that stand to turn what is already the largest food-delivery service in the US into a formidable global player. It agreed to buy London-based delivery Deliveroo Plc for 180 pence per share, or about £2.9 billion ($3.9 billion), and it's acquiring hospitality tech company SevenRooms Inc. for $1.2 billion. Most Read from Bloomberg 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. The company's buying spree highlights DoorDash's ambitions outside of the US, where it already commands about two-thirds of the food-delivery market. A takeover of Deliveroo will expand its reach to more than 40 countries, DoorDash said. The two companies combined had a gross order value of about $90 billion last year and have 50 million monthly active users. Meanwhile, the broader segment has been consolidating since pandemic-level highs, leaving room for a dominant player like DoorDash to grow even larger. Prosus NV in February agreed to buy Amsterdam's Just Eat NV, for example, while billionaire Marc Lore's Wonder Group Inc. closed its acquisition of Chicago-based Grubhub earlier this year. 'Our focus has always been build a great product, not just for consumers, but merchants as well as dashers and couriers,' said DoorDash Chief Financial Officer Ravi Inukonda. The deals provide 'an opportunity to invest across a broader set of countries and bring our product experience that got us to number one in the US as well as number one in all these countries into the delivery geographies as well.' DoorDash's acquisition of SevenRooms will give it a consumer-facing reservation platform similar to OpenTable or Resy that works with more than 13,000 restaurant groups. Its clients include Marriott International Inc., MGM Resorts International and Wolfgang Puck. In 2022, DoorDash worked with SevenRooms to pilot restaurant reservations within the DoorDash app in New York, Los Angeles and Chicago. In addition to restaurant delivery, DoorDash also offers white-label services to build ordering interfaces for restaurants' websites and phone answering systems.
Bloomberg
28-04-2025
- Business
- Bloomberg
Deliveroo Shares Jump After $3.6 Billion DoorDash Offer
Deliveroo Plc shares surged by more than 18% on Monday, the most since 2021, after the British delivery firm disclosed an acquisition offer from DoorDash Inc. On Friday, Deliveroo said in a filing that it had received a cash offer from DoorDash £1.80 per Deliveroo share. That would value the company at about $3.6 billion, according to calculations by Bloomberg.
Yahoo
25-04-2025
- Business
- Yahoo
DoorDash asks judge to dismiss Uber lawsuit over web ordering services
DoorDash Inc. asked a California judge to dismiss Uber Technologies Inc.'s anticompetition lawsuit against it, arguing that Uber is using an 'ill-fitting' state law to justify its claims. DoorDash, which has two-thirds of the U.S. food delivery market, argued in a statement about the filing in state court in San Francisco that Uber's February lawsuit is 'nothing more than a cynical and calculated scare tactic.' At the heart of the allegations are the white label delivery services that both companies have been expanding to increase their revenue. These offerings allow restaurant chains to build delivery ordering into their own websites and apps, so customers can use their technology and couriers without having to go to the Uber or DoorDash apps or website. In February, Uber alleged in a lawsuit that DoorDash uses 'coercive' practices such as threatening restaurants with multimillion-dollar penalties, or demoting restaurants' positions on the DoorDash app if they didn't agree to exclusive or near-exclusive use of its white-label delivery offering. That has stifled competition with Uber's own delivery service, costing it millions of dollars in revenue, Uber said. DoorDash denies the allegations, saying it 'competes fiercely yet fairly' and that merchants have the choice of which providers they work with. 'Instead of competing through innovation, Uber has resorted to litigation. Uber is trying to deter merchants from working with us and use legal threats to win business it hasn't earned.' A DoorDash lawyer said in an interview that Uber isn't using federal or state antitrust laws to make its claims, instead using what the company believes is an ill-fitting state law typically applied to employee noncompete provisions. 'It seems like the team at DoorDash is having a hard time understanding the content of our complaint,' a spokesman for Uber said in response to DoorDash's filing. 'When restaurants are forced to choose between unfair terms or retaliation, that's not competition — it's coercion. Uber will continue to stand up for merchants and for a level playing field. We look forward to presenting the facts in court.' DoorDash is targeting a July hearing on the motion, its attorney said, but the specific date will ultimately be determined by Superior Court Judge Christine Van Aken. Lung writes for Bloomberg. Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times. Sign in to access your portfolio
