Latest news with #PaloAltoDelivery
Daily Mail
06-05-2025
- Business
- Daily Mail
British takeaway! Deliveroo agrees to £2.9bn deal from US rival DoorDash
US food delivery giant DoorDash has reached an agreement to acquire Deliveroo in a deal valuing its London-listed rival at £2.9billion. The Silicon Valley-based group, which the largest food delivery platform in the US, said it would pay 180p per share in cash for Deliveroo. This proposal represents a 29 per cent premium to the London-listed group's closing share price on the day before the offer period started and a 44 per cent premium prior to sending its initial offer letter to Deliveroo. DoorDash said the takeover will expand its geographic presence to an additional nine markets, such as the UK, meaning it will have operations in over 40 countries. The tie-up will also provide the 'opportunity to allocate resources more effectively to strengthen competitive advantage', according to the group. DoorDash was founded in late 2012 - originally as Palo Alto Delivery - by Stanford University students Tony Xu, Stanley Tang, Andy Fang and Evan Moore. Deliveroo was started the following year by US national Will Shu and Greg Orlowski after Shu became dismayed about the lack of late-night food delivery options in London. Should the deal go through, the former investment banker is reportedly set to earn a £172million payout, based on his 6.4 per cent stake in the business. Shu said: 'We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values. '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.' Deliveroo shares rose 2.2 per cent to 175.9p on Tuesday morning, far below their initial public offering price of 390p. The group's 2021 IPO saw Deliveroo shed more than a quarter of its value on its first day of trading amid concerns about the firm's huge losses, dual-class structure and treatment of workers. Since then, it has contended with a massive slowdown in trade as loosening Covid-related curbs and cost-of-living pressures dampened demand for takeaways. This led to the firm slashing jobs and marketing spending, and exiting some territories, including the Netherlands and Australia. Deliveroo eventually recorded its first annual profit last year as international sales recovered and inflationary pressures eased. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Deliveroo's takeover 'could turn the UK market into a fierce two-horse race with DoorDash and Uber at the top'. He added: 'With no competing bid in sight, this looks like a bold, calculated move to outpace global rivals and gain ground fast.'
Yahoo
24-03-2025
- Business
- Yahoo
'Eat now, pay later' option from DoorDash, Klarna brings mixed reactions
Want DoorDash but a little low on funds? Coming soon will be some new options when it comes to paying for your DoorDash delivery. The options will be available "in the coming months" as DoorDash partners with Klarna, an "AI-powered payments and commerce network," according to a news release from DoorDash. The company did not specify how long before the new payment options would be available to customers. Here's what to know. DoorDash connects customers to restaurants, grocery stores, convenience stores and retail stores via a "dasher," who picks up and delivers their orders. It started as a food delivery service — named Palo Alto Delivery — in California in 2013. Got a package to drop off? A dasher also can pick up prepaid packages from your home and drop them off at the post office, UPS or FedEx. Customers order from local restaurants, convenience stores grocery stores and a variety of retail stores. DoorDash drivers, who work as independent contractors for the company and are known as dashers, will pick up the order from the store and deliver it to the customer. The app requires the customer to make an account where their name, address and payment information are locally stored. All the drivers on DoorDash are independent contractors who apply to work for the company. They use their own cars and have a separate app to accept and make deliveries. Drivers are paid with a base pay between $2 and $10, plus 100% of the tips they make from each delivery. The cost to use the DoorDash app is free unless you upgrade to DashPass, which costs $9.99 a month or $96 a year. Customers pay the price of the food from wherever they order, as well as fees and tips. Each order is subject to a delivery fee and a service fee. Delivery fees can vary depending on several factors, such as the restaurant, demand and location. "This partnership empowers customers with maximum choice and control over how they pay — from groceries and the season's big-ticket electronics to home improvement supplies, beauty, and even their DashPass Annual Plan membership," DoorDash announced. When a customer completes an order, KIarna will be an additional payment option. Options will include: Pay in full: Allows customers pay immediately using Klarna's payments experience. Pay in 4: Allows customers to pay in four equal interest-free installments. Pay later: Allows customers to defer payments to a more convenient time, such as a date that aligns with their paycheck schedules. Reaction was quick on the partnership allowing people to pay for their DoorDash order later. DoorDash is available in more than 7,000 cities and 30 countries around the world. To see what stores are available via DoorDash where you live, go to DoorDash's food delivery website and type in your address. As of Dec. 31, 2024, DoorDash had around 42 million monthly active users on its platforms, according to Statista. "As we expand DoorDash's offerings — from groceries and beauty to electronics and gifts — flexible payment options are essential to meeting our customers' needs,' said Anand Subbarayan, DoorDash head of money products. "Our partnership with DoorDash marks an important milestone in Klarna's expansion into everyday spending categories," said David Sykes, chief commercial officer of Klarna. "By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we're making convenience even more accessible for millions of Americans." Grocery and convenience stores on DoorDash familiar to Florida residents include Publix, Aldi, Sprouts Farmers Market, Fresh Market, Winn Dixie, ABC Fine Wine and Spirits and 7-Eleven. Retail stores range from Best Buy and Tractor Supply to Dick's Sporting Goods and Michaels. DoorDash announced March 18, 2025, a partnership with Dollar General "to bring SNAP/EBT payment capabilities to more than 16,000 of Dollar General's stores on the DoorDash Marketplace." This article originally appeared on Naples Daily News: DoorDash, Klarna partner to increase payment options
