DoorDash is making a big acquisition.
With a single acquisition, DoorDash Inc. has become a major global player in the online delivery space.
DoorDash has completed the acquisition of Helsinki, Finland-based online delivery platform Wolt Enterprises Oy in an all-stock transaction. This purchase brings DoorDash to operations a total of 27 countries, including the U.S.
Going forward, Wolt CEO Miki Kuusi will oversee the combined company's team and operations outside the U.S., reporting to DoorDash CEO Tony Xu. Under Kuusi’s leadership, DoorDash aims to accelerate its international growth through faster product development and improved investment efficiency.
DoorDash is now among the largest online food delivery companies in the world outside of China. Netherlands-based Just Eat Takeaway, which entered the U.S. market when it purchased Grubhub for $7.3 billion in stock in 2020, currently operates in 23 global markets.
DoorDash has also been expanding its suite of first-party platform services. In March 2022, the company entered into a definitive agreement to acquire Bbot, a start-up offering hospitality solutions such as in-store digital ordering and payments. This also includes the February 2022 introduction of flower delivery.
And 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.
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.
In terms of technology offerings, DoorDash still does not equal the breadth and depth of solutions provided by its chief North American rival Instacart, which under the leadership of its CEO Fidji Simo (a former Facebook executive) has taken a number of steps that suggest the company wants to join major technology providers such as Amazon, Apple, Google and Facebook.
However, this move certainly shifts DoorDash’s standing in its competition for market size and financial standing with Instacart, which recently filed a registration statement to go public with the SEC.
The Wolt consumer app will continue to run separately, supported by DoorDash’s resources. Wolt plans to maintain operations in all of the markets where it currently operates. Prior to the acquisition, DoorDash operated in the U.S., Canada, Australia, Germany, and Japan. Through Wolt, DoorDash will now also operate in Azerbaijan, Cyprus, Czech Republic, Denmark, Estonia, Finland, Georgia, Greece, Hungary, Israel, Kazakhstan, Latvia, Lithuania, Malta, Norway, Poland, Serbia, Slovakia, Slovenia, and Sweden.
"DoorDash is at the beginning of a colossal journey, and I'm more excited than ever about what we're building and the potential to help hundreds of millions of people across the globe in our mission to empower local economies," said Tony Xu, DoorDash co-founder and CEO. "Together with Wolt, we believe we have the best team and platform to serve merchants, consumers, and couriers in our existing and future markets. Our journey in building our international business is just beginning and we're confident in the incredible future we will build together."
"Today marks the beginning of a new chapter for Wolt," said Miki Kuusi, Wolt CEO and DoorDash head of international, "By joining forces with DoorDash, we have an even greater ability to build delightful products and services across continents. Our two companies share a strong vision for local commerce, and working side by side, we can accomplish more for all our stakeholders."