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Expansion into Dozens of Countries
In just a few hours, the San Francisco-based company announced the purchase of two companies worth a total of $5.1 billion. The first is the British delivery service Deliveroo, which will be acquired for $3.9 billion. Specifically, this will involve the purchase of existing and future issued shares, with an agreed price of 180 pence per share. This is 44% more than the price of Deliveroo shares on April 4, 2025, just before the expiration of the offer. In addition to helping the struggling shares of the British company, the acquisition will expand DoorDash’s global reach, with its list expected to grow to at least 40 countries. A competing bid could shake things up. According to Bloomberg, DoorDash’s CFO, Ravi Inukonda, sees this acquisition as a way to more easily achieve their goal of providing great products across the entire supply chain— from merchants to couriers to customers.
Service Improvements
In the second acquisition, DoorDash focused more on merchants who will be able to offer better customer service, including marketing tools to attract more consumers or maintain relationships, thanks to the SevenRooms software solutions integrated into the DoorDash Commerce app. SevenRooms, founded more than a decade ago and providing services to restaurants, hotels, and others in the hospitality sector, will use data for further innovations as part of the collaboration. The partnership is expected to be finalized in the second half of the year. [1]
Record Earnings
A positive development was also the economic performance of the delivery company for the first quarter of the current year. Its revenues rose to a historic high, reaching over $3.03 billion, representing a year-on-year increase of 21%. Despite these encouraging figures, LSEG analysts had expected revenues of $3.09 billion. A similar record scenario occurred with total orders, which increased by 18% to 732 million, while marketplace orders grew by 20% year-on-year, totalling $23.1 billion. A significant change also occurred in net profit, which exceeded $190 million, thus pushing the company out of a $23 million loss from a year ago. Earnings per share were $0.44, $0.05 more than expected. As for the net margin, it remained unchanged year-on-year at 13.1%, but compared to the last quarter of 2024, it showed a slight decline. This was due to a greater focus on more affordable products, with DoorDash expecting further growth in its margin. Gross profit stood at $1.5 billion, reflecting an 18% year-on-year increase. The company’s board also approved a stock buyback worth $5 billion.
Growing Customer Base
During the quarter in question, the company boasted an expansion of operations and process improvements that reduced errors, which, combined with a focus on providing more personalized offers, led to the aforementioned record user growth. Furthermore, the number of departing customers from the DashPass and Wolt+ platforms decreased. In the United States, demand continued to grow consistently, with consumers focusing more on food orders. Markets in the rest of the world lagged in total orders compared to the U.S., despite double-digit growth. DoorDash continues to monitor customer behaviour, recognizing potential changes that may occur. It expects the value of marketplace orders to rise between $23.3 and $23.7 billion. [2]
End of the sector downturn?
It could be said that the delivery service segment is slowly beginning to recover, as the end of the pandemic brought a decline in this area. This potential recovery is evidenced not only by the steps taken by DoorDash but also by other companies. The competitor Uber Eats, as part of an acquisition of an 85% stake in Trendyol Go, will start providing services in Turkey. This transaction amounted to $700 million in cash, giving Uber immediate access to the market. Similar steps have been taken by the investment firm Prosus, which will acquire the Dutch Just Eat Takeaway.com.
In conclusion, it can be said that DoorDash, through its strategic decisions, demonstrates its appetite for further growth and expansion beyond the United States. The focus on the entire supply chain adds value to the company, along with excellent economic results.
Disclaimer! This marketing material is not and should not be construed as investment advice. Data relating to the past are not a guarantee of future returns. Investing in foreign currencies may affect returns due to fluctuations. All securities transactions can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or may arise from the current economic environment, which may change. These statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s. regulated by the National Bank of Slovakia.
[1,2] Forward-looking statements represent assumptions and current expectations that may not be accurate or may arise from the current economic environment, which may change. These statements do not guarantee future performance. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that cannot be predicted, and actual developments and results may differ significantly from those expressed or implied in any forward-looking statements.
Sources:
https://about.doordash.com/en-us/news/doordash-announces-acquisition-sevenrooms
https://finance.yahoo.com/news/doordash-5-billion-buying-spree-123406096.html
