DoorDash adds in-store ordering and payments with acquisition
DoorDash Inc. is purchasing a hospitality technology startup.
The on-demand delivery platform has entered into a definitive agreement to acquire Bbot. The start-up offers hospitality solutions such as in-store digital ordering and payments.
As a result, DoorDash is expanding its suite of first-party platform services, which includes DoorDash Storefront, its commission-free online ordering solution. Bbot's solutions include a QR code scanner that brings customers to a retailer-branded, interactive online menu for in-store ordering. Customers can order with one another and alongside servers on a single, open tab.
Bbot's technology is designed to integrate with a retailer’s existing software services, including POS systems, loyalty programs, and reservation services. It can operate on mobile handhelds and tablets.
Rival on-demand delivery service Instacart also recently acquired an omnichannel order management technology startup, although Instacart’s acquisition is focused on grocery retailers, rather than restaurants. Instacart purchased FoodStorm, an order management system provider whose technology enables end-to-end order-ahead and catering services for grocery retailers.
Specifically, FoodStorm technology streamlines the manual process of customers calling in or placing in-store orders for prepared food by enabling multi-channel order (e-commerce, phone or in-store kiosk) management payment and fulfillment.
Meanwhile, DoorDash has been expanding its range of technology-supported offerings in a variety of areas. This includes the February 2022 introduction of flower delivery. DoorDash is partnering with more than 3,000 local and national florists across the country for on-demand delivery. The service launch follows years of the company fulfilling on-demand delivery for florists via its own channels with DoorDash Drive, its white-label fulfillment service.
In December 2021, the company introduced ultrafast grocery delivery in New York City via its DashMart online convenience storefront. Introduced in August 2020, the DashMart banner offers both household essentials and local restaurant products for on-demand delivery.
And in September 2021, DoorDash began enabling customers in select markets to toggle to the alcohol tab of the DoorDash app to browse and order from an assortment of alcoholic beverage products from restaurants, grocery stores, local retailers, and convenience stores. Previously, the company had been fulfilling alcohol on-demand delivery for national and local retailers via their own channels with its DoorDash Drive white-label fulfillment service.
"We're excited to bring our combined suite to an even wider selection of merchants across the hospitality space – including bars, hotels, and ghost kitchens – so these businesses can engage with more customers, increase their quality of service, and grow sales," said Tom Pickett, DoorDash chief revenue officer. "Bbot has built best-in-class features and highly customizable tools that will enable DoorDash to better support the ever-growing range of merchant needs."
"Over the past few years, the hospitality industry has seen the benefits of growing their online channels as well as digitizing their in-store operations," said Steve Simoni, CEO of Bbot. "Joining forces with DoorDash enables us to more rapidly scale our solutions so that, together, we can equip more businesses with more low-cost tools to help them provide excellent customer experiences and compete in today's digital world."
Upon deal close, Bbot's in-store digital and online ordering solutions will be available to retailers for no monthly subscription fee through August 31, 2022. Founded in 2013, DoorDash provides on-demand delivery from local and national businesses in more than 7,000 cities across the U.S., Canada, Australia, Japan, and Germany.