DoorDash Inc. has made headlines with its ambitious plans to expand its global footprint through two significant acquisitions. On May 6, 2025, the leading U.S. food delivery service announced its agreement to acquire London-based delivery platform Deliveroo Plc for £2.9 billion ($3.9 billion) and hospitality technology firm SevenRooms Inc. for $1.2 billion. These moves are set to bolster DoorDash's position in the competitive food delivery market and enhance its Commerce Platform, which aims to support local businesses.
The acquisition of Deliveroo, a well-known player in the food delivery sector, comes at a time when DoorDash is looking to solidify its presence in Western Europe. The deal, which values Deliveroo at 180 pence per share, is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approvals. This strategic initiative is seen as a way to tap into Deliveroo's existing customer base and profitability.
Meanwhile, the acquisition of SevenRooms, a New York City-based software company specializing in hospitality technology, aims to enhance DoorDash's capabilities in providing tools for merchants to grow their in-store sales and improve customer relationships. SevenRooms, founded in 2011, has established itself as a leader in hospitality technology, offering a comprehensive suite of tools for marketing, operations, and guest experience management. The integration of SevenRooms into DoorDash's Commerce Platform is anticipated to provide merchants worldwide with enhanced capabilities to drive profitability and customer engagement.
Parisa Sadrzadeh, DoorDash's Vice President of Strategy and Operations, expressed enthusiasm about the acquisition, stating, "We’re enhancing the DoorDash Commerce Platform to help merchants serve their customers across all channels. With SevenRooms, we’re excited to give local businesses around the globe new ways to bring more guests in the door, build and grow direct relationships with their customers, access best-in-class CRM, and drive profitability through smarter marketing." The transaction is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals.
These acquisitions come on the heels of DoorDash's impressive financial performance in the first quarter of 2025, where it reported record growth across several key metrics. The company recorded an 18% year-over-year increase in total orders, reaching 732 million, and a 20% rise in marketplace gross order value (GOV) to $23.1 billion. Revenue grew by 21% year-over-year to $3 billion, with a GAAP net income of $193 million, a significant turnaround from a loss of $23 million in the same quarter the previous year. Adjusted EBITDA also saw a notable increase to $590 million, reflecting the company's strong operational performance.
DoorDash's stock has performed well, delivering a 74.67% return over the past year, which demonstrates strong investor confidence. The company is now valued at approximately $87 billion, a testament to its growth strategy and market leadership. Analysts from Benchmark have high expectations for DoorDash, anticipating that the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) will reach the higher end of its guidance for the second quarter of 2025.
In addition to the acquisitions, DoorDash's board authorized a $5 billion stock repurchase program in February 2025, although no shares have been repurchased to date. This move indicates the company's commitment to returning value to its shareholders while pursuing growth opportunities in the market.
The strategic focus on expanding its offerings and execution capabilities is evident as DoorDash continues to diversify its services, including grocery delivery and other categories. The company forecasts a marketplace GOV of $23.3 billion to $23.7 billion for Q2 2025, along with an adjusted EBITDA of $600 million to $650 million. This positive outlook reflects DoorDash's commitment to innovation and supporting economic vitality worldwide.
As DoorDash embarks on this new chapter with its acquisitions of Deliveroo and SevenRooms, the company aims to create a seamless commerce experience across all customer engagement channels. The integration of advanced technology and a robust platform will not only enhance the services offered to consumers but also empower local businesses to thrive in a competitive landscape.
In conclusion, DoorDash's ambitious acquisition strategy, coupled with its strong financial performance, positions the company for continued growth and success in the evolving food delivery and hospitality technology markets.
