DoorDash to Acquire Wolt: Expanding Food Delivery Dominance

DoorDash Acquires Wolt in €7 Billion Deal

DoorDash, a leading on-demand delivery platform, revealed on Tuesday its agreement to acquire food delivery service Wolt. The transaction will be executed entirely in stock and is valued at €7 billion, equivalent to $8.1 billion.

Strategic Rationale for the Acquisition

According to a statement released by Tony Xu, co-founder and CEO of DoorDash, this acquisition is intended to expedite product innovation. It will also allow for increased specialization within individual markets and enhance the benefits offered to customers, merchants, and delivery personnel globally.

Wolt's Background and Leadership

Founded in 2014 by Miki Kuusi, Wolt is headquartered in Finland. Following the completion of the acquisition, Kuusi will assume the role of leading DoorDash International and will report directly to Xu.

The company currently employs over 4,000 individuals across 23 countries. Wolt’s technology streamlines the food ordering process, allowing users to easily locate restaurants and receive deliveries through a simple order placement system.

Funding History

Wolt has secured over $850 million in funding, as detailed in its Crunchbase profile. Its most recent funding round, totaling $530 million, occurred in January and was spearheaded by Iconiq Growth.

Notable participants in this round included Tiger Global, DST, KKR, Prosus, EQT Growth, EQT Ventures, and Coatue.

DoorDash's Acquisition History and Timeline

This represents DoorDash’s sixth acquisition, based on Crunchbase data. It is also the company’s second acquisition in 2021, following the purchase of Chowbotics earlier in the year.

The completion of this transaction is anticipated during the first half of 2022.

DoorDash's Recent Performance

DoorDash experienced significant growth during the global pandemic, achieving record order volumes and transaction values. This performance was reflected in its second-quarter earnings report for the period ending June 30.

Despite this growth, the company reported a net loss of $102 million for the quarter, indicating ongoing challenges with profitability.