Shares in DoorDash fall, despite acquisition news

By John Reynolds on Sunday 6 March 2022

Shares in DoorDash fall, despite acquisition news
Image source: Shares in DoorDash fall, despite acquisition news
CommentaryFood DeliveryGrocery DeliveryAlternative protein

Shares in DoorDash were down 11.5 per cent to $89.96; shares in Agronomics fell 16.6 per cent to 15p; and shares in HelloFresh were down 20.4 per cent to €37.58.

Shares in DoorDash fell 11.5 per cent to $89.96, according to the Future Food Finance FoodTech Index, in the week when it announced it will buy a restaurant and payment technology provider to boost in-store ordering and payments offering.

The acquisition of New York-based Bbot marks DoorDash’s first acquisition since its acquired Finnish food delivery firm Wolt for around $8bn last year.

Set up in 2017, Bbot simplifies digital orders and payment processes. It makes ordering software that can be virtually branded with an individual restaurant's logo to give it a more tailored feel. 

The move marks DoorDash’s continued shift from a delivery firm into an overarching technology provider for restaurants.

DoorDash said the Bbot purchase will mean it can grow “its suite of first-party Platform Services, which includes DoorDash Storefront, its commission-free online ordering solution, to address merchant demand for a more integrated and simplified software solution".
“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,” DoorDash’s chief revenue officer Tom Pickett said. 
“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 Steven 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."
No financial details of the deal were disclosed.
Meanwhile, it was also reported that DoorDash held discussions with London-listed Deliveroo as part of a move to expand in Europe.
DoorDash and Deliveroo are thought to have met last summer to talk about a potential tie-up that would have created a delivery giant with almost £4 billion in annual sales. 

However, a deal did not come to fruition and DoorDash shelled out around $8bn to buy Wolt.
Deliveroo was among several tech companies that decided against a premium listing on the London Stock Exchange and opted instead for a standard one.
Elsewhere, shares in Agronomics fell 16.6 per cent to 15p according to the tracker while shares in HelloFresh were down 20.4 per cent to €37.58.