Delivery giant DoorDash is making two acquisitions that will expand its footprint globally and into restaurants’ on-premise business.
It has an agreement to acquire Deliveroo, the U.K.-based delivery service, for $3.9 billion. The all-cash deal will bring DoorDash into nine new countries in Europe, Asia and the Middle East.
DoorDash also plans to acquire SevenRooms, a reservations and digital marketing company, which it says will help restaurants drive in-store sales. It will pay about $1.2 billion in cash.
The two deals solidify DoorDash as a global delivery leader as well as an all-around technology supplier to restaurants for both their off- and on-premise needs.
In a comment on the Deliveroo acquisition, DoorDash founder and CEO Tony Xu essentially summed up the strategy behind both deals: “Our mission at DoorDash is to grow and empower local economies,” he said. “Coming together with teams that have similar visions and values accelerates our work to achieve that mission.”
With Deliveroo, DoorDash will be in 40 countries with more than 50 million monthly active users. Combined, the services generated about $90 billion in gross order value last year, about $10 billion of which came from Deliveroo.
New York-based SevenRooms, meanwhile, works with more than 13,000 restaurants, hotels and other venues globally, including Union Square Hospitality Group, Nobu and Marriott International.
Founded in 2011, It offers tools like reservations, online ordering and waitlists that allow restaurants to collect customer data that they can use to personalize their service and marketing.
It will become part of DoorDash's commerce platform, which includes online ordering, mobile apps and a business management app.
The acquisition news came ahead of DoorDash's first quarter earnings report Tuesday morning. In the quarter, total orders increased 18% year over year, marketplace gross order volume rose 20%, to $23.1 billion, and revenue grew 21%, to $3 billion.
DoorDash’s stock was down about 5% in premarket trading.
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