DoorDash Inc. announced two major acquisitions on Tuesday, including the $1.2 billion all-cash purchase of restaurant booking software provider SevenRooms, as part of its broader strategy to diversify and expand globally.
The company also reported first-quarter revenue that narrowly missed analyst expectations, leading to a nearly 10% drop in its share price.
The SevenRooms deal is expected to close in the second half of 2025 and marks a strategic move into hospitality software. SevenRooms, based in New York City, provides reservation and customer management tools to restaurants and hotels, with clients including Marriott International, MGM Resorts, and Wolfgang Puck. The acquisition builds on a previous partnership between the two companies that allowed DoorDash users to make restaurant reservations within its app.
Alongside this, DoorDash confirmed its $3.9 billion acquisition of British food-delivery firm Deliveroo, aiming to significantly boost its presence in international markets. The acquisition, subject to regulatory and shareholder approvals, would bring DoorDash’s services to more than 40 countries and expand its monthly active user base to roughly 50 million. Deliveroo’s shareholders owning 15.4% of the company, including CEO Will Shu, have already agreed to the terms.
Despite the ambitious expansion, DoorDash’s financial results delivered a mixed signal to investors. For the first quarter of 2025, the company posted a net income of $193 million, or 44 cents per share, beating expectations. However, revenue came in slightly below forecasts at $3.03 billion versus the anticipated $3.09 billion.
Order volume remained strong, with 732 million total orders, an 18% year-over-year increase, closely aligning with analyst projections. The company reported that grocery delivery continued to be a growing category, with increased average spending per customer and particularly strong performance in perishable goods.
Looking ahead, DoorDash forecast adjusted second-quarter EBITDA between $600 million and $650 million, roughly in line with Street estimates. Executives reiterated that consumer demand has remained solid in 2025, supported by consistent user engagement and seasonal order trends.
As the food delivery industry continues to consolidate following the pandemic-driven surge, DoorDash’s leadership emphasized that its focus remains on long-term growth across logistics, consumer engagement, and merchant services.
Chief Financial Officer Ravi Inukonda described the acquisitions as an opportunity to bring DoorDash’s operational and product strengths to new markets. CEO Tony Xu stressed that while the pace of dealmaking may vary, the company remains disciplined in selecting strategic investments.
CNBC, the Wall Street Journal, and Bloomberg contributed to this report.
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