DoorDash Buys Deliveroo for $3.86 Billion and SevenRooms for $1.2 Billion: Expansion and Growth Explained
Wondering why DoorDash is buying Deliveroo for $3.86 billion? Searching for updates on DoorDash's latest acquisitions? DoorDash has officially announced the acquisition of U.K.-based Deliveroo for approximately £2.9 billion ($3.86 billion), alongside the purchase of restaurant tech platform SevenRooms for $1.2 billion. This strategic move allows DoorDash to significantly expand its global footprint, strengthen its European presence, and diversify beyond food delivery services. For users curious about the impact of these acquisitions, DoorDash will soon operate across 40 countries, serving over 50 million monthly active users. These bold investments demonstrate DoorDash’s commitment to becoming a dominant force in both consumer-facing food delivery and B2B hospitality technology.
DoorDash’s Deliveroo Deal: A Bold European Expansion
DoorDash’s acquisition of Deliveroo marks a major leap into the European market. By buying Deliveroo, DoorDash gains immediate access to nine new markets across Europe where Deliveroo already maintains a strong presence. This gives DoorDash a significant competitive advantage over key players like Uber Eats and Just Eat Takeaway. DoorDash plans to leverage the combined scale and logistics infrastructure to better serve European customers and compete more effectively on an international level. The acquisition price of 180 pence per share reflects a 44% premium over Deliveroo’s stock price as of April 4, signaling DoorDash’s aggressive strategy to secure high-value assets.
SevenRooms Acquisition: Diversifying Beyond Food Delivery
Alongside its Deliveroo purchase, DoorDash also revealed it is acquiring SevenRooms for $1.2 billion in cash. SevenRooms is a customer relationship management (CRM) and guest experience platform that serves restaurants, hotels, and entertainment venues. Brands like MGM Resorts, Marriott International, Hyatt, Accor Group, and Wynn Resorts already use SevenRooms to manage reservations and guest engagement. By integrating SevenRooms into its growing B2B Commerce Platform division, DoorDash will expand into high-margin, recurring-revenue software services. This move is crucial for long-term diversification, helping DoorDash generate income beyond its core food delivery operations — a key to increasing its valuation and investor appeal.
What the Deliveroo Acquisition Means for DoorDash’s Future
Acquiring Deliveroo offers DoorDash a clear path to dominate European food delivery markets. Deliveroo reported around £2 billion ($2.67 billion) in revenue and a gross transaction value of £7.1 billion ($9.49 billion) for 2024. Although Deliveroo’s share price struggled post-IPO due to shifting consumer behavior and increased competition, DoorDash sees long-term potential in Deliveroo's established user base and logistics network. With this acquisition, DoorDash will now be positioned to tap into lucrative markets across the U.K., France, Italy, Spain, and other major European economies, aligning with trends of rising digital ordering and local logistics solutions.
Challenges Behind Deliveroo’s Decline and DoorDash’s Opportunity
Deliveroo’s journey since going public in 2021 has been rocky. Initially boosted by pandemic-driven food delivery demand, the company later struggled as COVID-19 restrictions eased, consumer behavior shifted, and competition intensified. Deliveroo exited Australia in 2022 and sold its Hong Kong operations to Delivery Hero in March 2025. Nevertheless, its core European operations remain robust, offering DoorDash a valuable springboard into high-demand, tech-savvy markets. By addressing Deliveroo's weaknesses with its strong operational expertise and aggressive investment model, DoorDash is aiming to transform this acquisition into a growth engine.
Why SevenRooms Matters in DoorDash’s Broader Strategy
The SevenRooms acquisition underscores DoorDash's ambition to build a full-stack hospitality platform. With 13,000 customers including world-renowned hotel chains and resorts, SevenRooms offers a profitable, SaaS-driven business model. This move reflects a broader industry trend where food delivery companies are evolving into all-encompassing platforms providing tools for reservations, marketing automation, loyalty programs, and guest data analytics. Diversifying into high-value SaaS products is crucial as DoorDash faces growing competition, thinner delivery margins, and demands for sustainable revenue growth from investors.
Regulatory Approvals and Closing Timelines
Both acquisitions — Deliveroo and SevenRooms — are subject to regulatory approvals. DoorDash expects the Deliveroo deal to close by Q4 2025, while the SevenRooms acquisition should finalize in the second half of 2025. These timelines reflect DoorDash’s urgency to integrate and expand quickly, particularly before larger competitors can further consolidate their positions in global markets.
A New Era for DoorDash
DoorDash’s $5 billion investment signals a transformative moment in its corporate evolution. By acquiring Deliveroo, DoorDash becomes a global powerhouse in food delivery, and by purchasing SevenRooms, it secures a strong foothold in the highly profitable hospitality technology market. These strategic moves will help DoorDash diversify revenue streams, attract high-value customers, and defend against market volatility. As digital commerce, last-mile logistics, and hospitality tech continue to grow, DoorDash is positioning itself for long-term leadership well beyond the traditional delivery market.
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