06-05-2025
DoorDash announces $5B Deliveroo, SevenRooms deals
Deliveroo partners with approximately 176,000 restaurants, grocers and retailers, and served about 7 million monthly active consumers in 2024. Shutterstock
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DoorDash had a big day Tuesday with the announcements that it is acquiring international delivery service Deliveroo and restaurant booking platform SevenRooms for a combined $5 billion.
DoorDash will pay $3.9 billion for London-based delivery service Deliveroo, expanding the San Francisco-based delivery company's reach to Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates, and the United Kingdom.
Deliveroo partners with approximately 176,000 restaurants, grocers and retailers, and served about 7 million monthly active consumers in 2024, DoorDash said in a press release.
DoorDash also announced it is buying New York City-based SevenRooms, a customer relations marketing (CRM) and operations platform for restaurants.
Tony Xu, CEO and co-founder of DoorDash, said in a press release that following the Deliveroo acquisition, DoorDash will 'cover more than 40 countries with a combined population of more than 1 billion people…'
'The Enlarged Group (DoorDash and Deliveroo) will bring together DoorDash's strong operating playbook with Deliveroo's local expertise to invest in innovation and execution at an even higher level,' Xu said. 'Together, we will work to deliver the best experience for all of our stakeholders, to grow the GDP of cities around the world, and to build the leading global platform for local commerce.'
The acquisition announcements appeared to alarm Wall Street investors, considering the company beating analyst expectations on earnings by four cents, reporting $0.44 per share for the first quarter, according to Earnings Whispers.
Investors were surprised by DoorDash missing revenue expectations, though. The company reported $3.03 billion in revenue for Q1, missing analyst expectations of $3.09 billion by 1.9%.
Year-over-year revenue growth was 20.65% for the quarter, while earnings growth beat analyst expectations by 7.3%.
The mixed results weren't enough to calm investors, though. DoorDash stock value dropped roughly 5.4%, following the multi-billion spending spree. The stock price had recovered somewhat by mid-afternoon when it was down 3.5% from the morning high of $195.42.
It was not immediately clear what impact, if any, the SevenRooms purchase would have on DoorDash's grocery business. DoorDash said in a press release that the platform is focused on restaurants, hotels, and entertainment venues.
The purchase of Deliveroo, however, aligns the two companies' 'dedication to serving merchants across multiple categories in local commerce,' DoorDash said.
Similar to DoorDash, which launched grocery delivery in August 2020 in direct competition with Instacart, Deliveroo, which launched grocery delivery in March 2020, is 'innovating in new categories such as grocery and retail,' DoorDash said.
