DoorDash acquires restaurant tech firm SevenRooms for $1.2b

DoorDash has announced the acquisition of restaurant technology company SevenRooms for US$1.2 billion in an all-cash deal, set to close in the second half of 2025.

DoorDash’s Q1 2025 revenue reached US$3.03 billion, a 21% increase year-over-year, though slightly missing analyst expectations of US$3.09 billion.

The company reported earnings per share of 44 cents, surpassing the 39-cent forecast, despite total orders falling just short of the expected 732.7 million.

DoorDash saw a significant jump in net income, reaching US$193 million, compared to a US$23 million loss last year, with growth in the grocery delivery segment.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ DoorDash’s acquisition strategy reflects broad industry consolidation

DoorDash’s acquisition of SevenRooms for $1.2 billion and Deliveroo for $3.9 billion reflects a strategic approach to consolidation in the food delivery sector.

The company has previously used acquisitions to expand capabilities and market reach, such as acquiring Caviar from Square for $410 million in 2019 to gain access to premium restaurants1.

The SevenRooms acquisition highlights DoorDash’s interest in expanding beyond delivery into restaurant technology and operations, offering a more comprehensive service for merchants.

With the Deliveroo acquisition, DoorDash will expand from its current markets to operate in over 40 countries worldwide, significantly increasing its global footprint and competitive positioning against UberEats2.

2️⃣ DoorDash’s journey from losses to profitability shows maturing business model

DoorDash’s Q1 2025 results mark a significant financial transition with $193 million in net income compared to a $23 million loss in the same quarter a year ago, demonstrating the company’s path to sustainable profitability3.

This transition came alongside substantial growth, with marketplace gross order value increasing 20% year-over-year to $23.1 billion and total orders growing 18% to 732 million3.

The company’s adjusted EBITDA reached a record $590 million, up 59% from the previous year, showing dramatically improving operational efficiency as the business scales3.

DoorDash’s willingness to make large acquisitions amid this profitability shift indicates confidence in its business model and ability to generate returns on significant investments.