Latest news with #SevenRooms
Bloomberg
27-05-2025
- Business
- Bloomberg
DoorDash Seeks $2 Billion in Convertible Bond After Deal Spree
DoorDash Inc. is raising $2 billion from the sale of convertible bonds, less than a month after the US' largest food-delivery service announced a pair of sizable deals to expand its global footprint. The company plans to use the proceeds of the five-year note offering for purposes including potential acquisitions and buybacks, as well as hedging transactions related to the deal, according to an announcement Tuesday. DoorDash agreed to buy London-based delivery operator Deliveroo Plc for about $3.9 billion and hospitality tech company SevenRooms Inc. for $1.2 billion, separate announcements on May 6 showed.
Skift
27-05-2025
- Business
- Skift
The Backstage AI Revolution in Hotels: Kurien Jacob Breaks It Down
Kurien Jacob, Partner and Managing Director at Highgate Technology Ventures, will take the stage at the Skift Data + AI Summit to reveal how AI isn't just enhancing the guest experience, it's rewiring the very infrastructure of hotels. A veteran of the travel, tech, and software sectors with over four decades of experience, Kurien Jacob now leads Highgate Technology Ventures (HTV) as a partner and MD. He's invested in forward-thinking hospitality startups like SevenRooms, LodgIQ, and Laasie. At the Skift Data + AI Summit, Kurien will share why the real AI revolution in travel isn't just guest-facing, it's operational, structural, and accelerating fast. With his session just around the corner, Kurien Jacob shared a few candid thoughts on where the travel industry is missing the mark with AI and what trends he's betting on next. What do you think the travel industry still gets wrong when it comes to applying AI? 'The travel industry still treats AI mostly as a sales and support tool – pushing deals or running chatbots – this is going to be transformative across the industry. This is the only technology that may not require you to be a treasure of experience. I think this is going to kill experience in favor of knowledge, thought processes, intelligence, and a clear open mind for adaptation. This transformation is going to be so fast that your head will spin and non-believers will be left in the dust.' What emerging trends in AI or data are you watching most closely right now? Generative AI 'This is obviously an outcome from the core engine. How does this integrate with the core engine of AI in computing, math, image recognition etc.' AI Agents 'The biggest impact is going to be for travel, accommodations, restaurants as there is a lot of answering questions and doubts. Once you win the trust with Q&A then you focus on task completion such as booking a flight, hotel, restaurant, and activity.' B2B Applications 'Using AI to tailor experiences for B2B customers is key. How do we pass on AI-completed products for customers? In fact, the biggest business shift will probably be SaaS to AI solutions for productivity and software all in one. Companies who get this will be faster to win.' If you had to place a big bet on one AI breakthrough that could reshape travel, what would it be? 'Ok for the customer – Autonomous AI Agents or software connected to personal AI assistants around the world asking questions, wanting to book travel. Ask anything and request execution. That's where commerce may come in. Entire back office of travel or hospitality would be replaced. No longer talking to humans but machines. 95% will be answered by machines and 5% could be touched by humans. Travel and hospitality would be boring as most functions would be done through AI and the differentiation would be with creativity, intelligence, and humor. Think about the internet and multiply it by 10 for this tech. You want to write descriptions for an AI to discover. And here there are no static web pages. It's interactive. We have moved to a conversational age!!' Don't Miss Kurien Jacob at the Skift Data + AI Summit Kurien Jacob is one of the sharpest minds shaping the future of operational AI in hospitality. His session will be a deep dive into the forces already rewriting the industry's playbook. Register now to join the conversation that's redefining travel tech from the ground up. Get Your Tickets 1 Person Solo Ticket $895 Buy Now 2-6 PeOPLE Group Tickets From $815 each Buy Now Who Is Already Joining The Skift Data + AI Summit This June Skift Data + AI Summit in New York City is fast approaching - take a look at who is planning to attend and add your company's name to the list. You won't want to miss this exciting global travel industry event. Read More
Yahoo
22-05-2025
- Business
- Yahoo
This Magnificent Stock Is Up 370% From Its 2022 Low -- 2 Reasons to Buy It Now, and 1 Reason to Steer Clear
DoorDash's stock peaked during the tech frenzy in 2021, before plunging in 2022 during the S&P 500 bear market. Its stock has since soared by 370%, thanks to its rapidly expanding platform and growing international footprint. The company continues to deliver great financial results, but its shares look a little expensive. These 10 stocks could mint the next wave of millionaires › DoorDash (NASDAQ: DASH) operates the most popular food delivery platform in the United States. Its stock has soared by 370% since it bottomed in 2022 during the S&P 500 (SNPINDEX: ^GSPC) bear market, as the company has drastically expanded its service offerings and its global footprint. If DoorDash stock can gain another 22%, it will reclaim its all-time high, which was set during the tech frenzy in 2021. Can the recovery continue? Here are two reasons to buy shares, and one reason to act with caution. DoorDash generated a record $3 billion in revenue during the first quarter of 2025. That was a 21% increase from the year-ago period, and it was the first time the company crossed the $3 billion milestone. DoorDash's revenue is climbing for a few reasons. First, the company's gross order value (GOV), which measures the dollar value of each customer order on the platform, continues to grow. It reached a record high of $23.1 billion during the first quarter, which was up 20% year over year. Second, DoorDash's net revenue margin has been trending higher for the last few years. It came in at 13.1% during the quarter, which was just shy of its record high of 13.5%. Net revenue margin is the percentage of GOV which DoorDash gets to keep -- what's left over after the company pays restaurants, retailers, and drivers their share of each order. When the margin trends higher, it means DoorDash is squeezing more efficiency out of its logistics network, or raising its take rate (the fee it earns for completing each order). DoorDash is also growing through acquisitions. The company just agreed to spend $3.8 billion to buy Deliveroo, one of the largest food and grocery delivery platforms in the United Kingdom. In the very same week, DoorDash announced that it would spend $1.2 billion to acquire SevenRooms, a software provider to the hospitality industry. Restaurants and hotels use it to improve their marketing, operations, and guest experience, so DoorDash thinks it will help its merchants serve their customers more effectively. The recent acquisitions follow other blockbuster deals over the last few years. In 2022 DoorDash acquired Wolt, which was one of Europe's biggest food and grocery delivery companies at the time. It had a foothold in 23 countries, so it helped DoorDash accelerate its international expansion. Nevertheless, DoorDash's revenue growth has steadily decelerated in recent quarters, primarily because management is spending less aggressively on operating costs so it can deliver higher profits. And this strategy appears to be working. During the first quarter of 2025 DoorDash had almost $2.9 billion in operating costs, an 11.7% increase year over year. Since revenue grew at a much faster rate of 21%, more money flowed to the bottom line as profit. As a result, the company delivered $193 million in net income, a big positive swing from its $23 million net loss in the year-ago period. In the past, DoorDash regularly grew its operating costs at a much faster rate even if it led to losses on the bottom line, because management's core focus was on customer acquisition in the very competitive food delivery space. But now DoorDash is the dominant platform in the U.S., with a market share of over 60%, and it has diversified into other verticals like groceries and retail products. So its competitive position is secure enough for management to shift its focus toward profitability. Beyond the strong net income in Q1, the company has now delivered more than $2 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) over the last four quarters alone. This is a non-GAAP (adjusted) measure of profitability, which excludes one-off and noncash expenses like stock-based compensation. DoorDash prefers investors focus on this metric rather than net income, because it's a better indication of how much cash its business is actually generating. Generally speaking, a highly profitable business is more sustainable over the long term. It also gives management greater flexibility to reinvest in growth initiatives like marketing, or research and development. If there is one reason to steer clear of DoorDash stock, valuation might be it. The company isn't consistently profitable enough on a GAAP (generally accepted accounting principles) basis to use the price-to-earnings (P/E) ratio. However, we can value its stock using the price-to-sales (P/S) ratio, which divides a company's market capitalization by its trailing-12-month revenue. DoorDash currently trades at a P/S of 7.9, which is near its highest level in three years. That also makes it far more expensive than Uber Technologies (NYSE: UBER), which trades at a P/S of just 4.3. Though the Uber Eats food delivery platform is trailing DoorDash in the U.S., Uber also operates the largest ride-hailing network in the world, in addition to a growing commercial freight network. During the first quarter of 2025, Uber had $42.8 billion in gross bookings, which was almost double DoorDash's GOV figure. Moreover, Uber generated almost four times as much revenue, with its top line coming in at $11.5 billion during the quarter. That means DoorDash probably shouldn't be trading at such a steep premium to Uber, since Uber is a significantly more diversified company and generates far more revenue. Plus, with autonomous vehicles slowly hitting the roads, I would argue that Uber has significantly more upside than DoorDash over the long term. DoorDash might be a good buy if you can hold onto your shares for five years or more, which would give the company some time to grow into its valuation. But shorter-term investors might want to steer clear, because upside might be limited over the next 12 months or so. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,127!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,106!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $642,582!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 19, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash and Uber Technologies. The Motley Fool has a disclosure policy. This Magnificent Stock Is Up 370% From Its 2022 Low -- 2 Reasons to Buy It Now, and 1 Reason to Steer Clear was originally published by The Motley Fool
Yahoo
08-05-2025
- Business
- Yahoo
DoorDash to buy hospitality technology provider SevenRooms
Local commerce platform DoorDash has agreed to acquire SevenRooms, a company specialising in hospitality technology based in New York City, US. This move is aimed at expanding DoorDash's Commerce Platform capabilities, providing merchants around the world with tools to increase in-store and delivery sales, build customer relationships, and bolster profitability. The acquisition, which is anticipated to be finalised in the second half of 2025, is subject to standard closing conditions and regulatory approvals. DoorDash's strategy and operations vice president Parisa Sadrzadeh said: 'We're enhancing the DoorDash Commerce Platform to help merchants serve their customers across all channels.' '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.' Established in 2011 by Joel Montaniel, Allison Page, and Kinesh Patel, SevenRooms offers an array of tools for marketing, operations, and guest experience, all integrated with its customer relationship management (CRM) system. These tools are claimed to be designed to assist restaurants, hotels, and other hospitality businesses in fostering deeper guest relationships, optimising operations, and driving revenue growth. SevenRooms co-founder and CEO Joel Montaniel said: 'We founded SevenRooms with a mission to help hospitality operators understand their guests and grow their business, enabling a more sustainable future." "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. With an operator-first mentality at our core, 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 personalised 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.' According to DoorDash, the combination of its scale and track record in digital innovation with SevenRooms's in-store capabilities is expected to significantly enhance merchants' potential for growth through both direct and third-party channels. As SevenRooms becomes a part of DoorDash, it is stated to benefit from increased resources and a wider global reach, which will accelerate its 'innovation roadmap' and create additional value for a larger number of merchants. The collaboration will continue to support an "open, partner-friendly" ecosystem, reinforcing their focus on empowering local businesses and nurturing connections between consumers and their 'favourite' places, whether they are dining out, ordering in, or interacting through a merchant's digital platform. In this transaction, financial services company William Blair acted as the exclusive financial adviser to SevenRooms, with Goodwin Procter providing legal counsel. A&O Shearman was the legal adviser to DoorDash. "DoorDash to buy hospitality technology provider SevenRooms" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
07-05-2025
- Business
- Economic Times
DoorDash is on a $5 billion buying spree after earnings beat
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 billion. 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 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. 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. 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 London. High bar DoorDash's 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 Shu. What Bloomberg intelligence says: DoorDash's 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 analyst To 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 Tuesday. Earnings results For 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 year. Total 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 period. Total 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.
