DoorDash has snapped up British delivery app Deliveroo and New York-based booking platform SevenRooms in two multi-billion-dollar deals.
DoorDash acquired the UK-based delivery giant Deliveroo for $3.9 billion in a strategic move to expand its business footprint globally.
Deliveroo posted its first profit last year and has been struggling to stay afloat in the past years.
Moving forward, the delivery platforms plan to operate in a joint union under The Enlarged Group’s brand portfolio while taking advantage of the expanded geographical areas.
Tony Xu, CEO and co-founder of DoorDash, commented: “We’ll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive.
“The Enlarged Group will bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise to invest in innovation and execution at an even higher level.
“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.”
Additionally, the delivery platform bought hospitality booking software platform Seven Rooms for $1.2 billion as part of its business strategy to grow its portfolio.
DoorDash will now feature booking and managing tools for hotel reservations, creating an omnichannel stream of revenue for the company.
Parisa Sadrzadeh, VP of Strategy and Operations at DoorDash, 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.”
Moving forward, the company plans to have a 6-to-12-month review of the newly merged entity after the deal is closed.
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