DoorDash on Tuesday announced two major acquisitions as it seeks to expand its reach in Europe and diversify its sources of revenue.
DoorDash said it has agreed to buy its U.K. rival Deliveroo for about £2.9 billion (around $3.87 billion) as the U.S. food delivery company seeks to expand into new markets.
Alongside this, DoorDash separately said it is acquiring SevenRooms, which provides CRM, marketing, and operations software to help restaurants, hotels, and public venues with reservations and guest management, for $1.2 billion in cash.
The Deliveroo acquisition would give DoorDash access to nine new markets in Europe, where the U.K. firm operates primarily. The companies are betting their combined scale will also help them compete better with rivals such as Just Eat Takeaway and Uber Eats.
Meanwhile, buying SevenRooms would let DoorDash bake restaurant reservation, CRM, and guest management features into its B2B commerce platform division, helping the company diversify beyond food delivery.
DoorDash will pay Deliveroo shareholders 180 pence (around $2.40) per share, which represents a premium of 44% over the latter’s share price on April 4, when the U.S. firm approached with its acquisition offer, the company said. DoorDash would operate in 40 countries and serve a total of 50 million monthly active users once this acquisition closes.
Founded in 2013, Deliveroo went public in 2021, when the grocery and food delivery sector was riding high on post-pandemic tailwinds. People were still trying to stay home, work remotely, and so were ordering takeout more than they would have otherwise. Food and grocery delivery startups were being founded in droves and attracting piles of venture capital.
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But as COVID fears faded and people returned to shopping in person and going out to restaurants and cafes, food and grocery delivery startups suddenly found themselves struggling to adjust to rapidly changing consumer behavior in a suddenly crowded space. It didn’t help that capital started growing scarce in 2022 as interest rates rose and venture investors held on to their checks as they sought more profitable investments.
Since its listing, Deliveroo’s shares had declined more than 50% until April 4. This March, the company sold its Hong Kong business to Delivery Hero, citing intense competition. It had also exited Australia in 2022, where it faced similar competition pressures.
SevenRooms has so far raised about $75 million in total, per PitchBook, and it says it has about 13,000 customers, which include MGM Resorts, Marriott International, Accor Group, Wynn Resorts, and Hyatt.
Deliveroo reported revenue of about £2 billion (around $2.67 billion) and gross transaction value of £7.1 billion (around $9.49 billion) in the year ending December 2024.
The Deliveroo deal is expected to close in Q4 2025, while the SevenRooms acquisition is expected to close in the second half of 2025. Both deals would require regulatory approval.
