DoorDash Acquires Deliveroo and SevenRooms

DoorDash Expands with Strategic Acquisitions

DoorDash announced on Tuesday the completion of two significant acquisitions, designed to broaden its European presence and diversify its revenue streams.

Acquisition of Deliveroo

DoorDash has reached an agreement to purchase its U.K.-based competitor, Deliveroo, for approximately £2.9 billion, equivalent to around $3.87 billion. This move is a key component of DoorDash’s strategy to penetrate new markets internationally.

The acquisition of Deliveroo will grant DoorDash access to nine European markets where Deliveroo currently operates. The combined entity anticipates enhanced competitiveness against industry rivals like Just Eat Takeaway and Uber Eats through increased scale.

SevenRooms Acquisition

In a separate transaction, DoorDash is also acquiring SevenRooms for $1.2 billion in cash. SevenRooms specializes in providing CRM, marketing, and operational software solutions for restaurants, hotels, and venues, focusing on reservation and guest management.

Integrating SevenRooms’ capabilities will allow DoorDash to incorporate restaurant reservation, CRM, and guest management functionalities directly into its B2B commerce platform. This represents a diversification of the company’s offerings beyond its core food delivery service.

Deal Details and Shareholder Value

DoorDash will pay Deliveroo shareholders 180 pence per share, translating to roughly $2.40. This represents a 44% premium over Deliveroo’s share price as of April 4th, the date DoorDash initially presented its acquisition offer.

Upon completion of the Deliveroo acquisition, DoorDash will operate in 40 countries and serve a combined total of 50 million monthly active users.

Deliveroo’s Recent History

Established in 2013, Deliveroo became a publicly listed company in 2021, benefiting from the surge in demand for grocery and food delivery services during the COVID-19 pandemic.

However, as pandemic-related restrictions eased and consumer habits shifted back towards in-person dining and shopping, food delivery startups encountered challenges adapting to the evolving market landscape.

Increased competition and a tightening of venture capital funding, beginning in 2022 with rising interest rates, further impacted the sector. Deliveroo’s share price had fallen by over 50% by April 4th.

Prior to the acquisition announcement, Deliveroo had already begun streamlining its operations, selling its Hong Kong business to Delivery Hero in March and exiting the Australian market in 2022 due to competitive pressures.

SevenRooms’ Customer Base

SevenRooms has secured approximately $75 million in funding to date, according to PitchBook data. The company currently serves around 13,000 customers, including prominent names such as MGM Resorts, Marriott International, Accor Group, Wynn Resorts, and Hyatt.

Financial Performance

Deliveroo reported revenue of approximately £2 billion (around $2.67 billion) and a gross transaction value of £7.1 billion (around $9.49 billion) for the fiscal year ending December 2024.

Timeline and Regulatory Approvals

The acquisition of Deliveroo is anticipated to finalize in the fourth quarter of 2025. The SevenRooms acquisition is expected to be completed during the second half of 2025. Both transactions are contingent upon receiving the necessary regulatory approvals.