The DoorDash delivery program has agreed to buy Finnish Finnish supplier from Finland at a cost of € 7bn, in a way that could be the most expensive in Europe’s fastest-growing competitive market.
Wolt from Helsinki, with more than 4,000 employees, operates in 23 European markets including Germany, where DoorDash has been keen to provide food and nutrition to consumers.
The acquisition “allows us to accelerate the establishment” in markets beyond DoorDash U.S., Tony Xu, chief executive, told the Financial Times. “This is a business that was created to be global, so we can’t be too happy.”
For DoorDash, based in San Francisco, the agreement will provide access to 22 new countries representing customers who can reach 700m, Xu said. Contracts from the deal sent DoorDash shares up about 20 percent on temporary sales on Tuesday.
The company is also planning to secure a $ 400m offer in the Flink grocery app later Wednesday, two sources close to the deal told FT. The injection comes as part of a $ 600m Series B roundup that will give the Berlin-based company, less than a year old, a cash advance of $ 2.1bn.
The move announces a “European Cold War” on delivery programs, Barclays expert Ross Sandler said, showing the neck brace that has occurred as senior players move to swallow younger competitors who have shown interest.
“Honestly, if you had asked me a few months ago, I would have said we would do well to compete [against DoorDash], ”Miki Kuusi, founder of Wolt and a senior executive, said.
“I just realized we could do a lot more together, because in the end, we’ve become a smaller company that comes out of a tough domestic market.”
Earlier Tuesday, Gopuff of the US he announced that it grew in the UK as part of its global development, having bought two British players, Dija and Fancy.
Kuusi will run DoorDash International, a new phase of its operations outside the US. He will explain Xu, though he may not say where he wants to be.
Other “executives” have joined DoorDash, the company said. The deal is expected to end in the first half of 2022, subject to legal approval.
Wolt, founded in 2014, raised more than $ 800m as a business venture, plus $ 530m in January led by Iconiq Capital.
The company’s revenue doubled to $ 345m last year and lost $ 45m, it said during a fundraiser.
The app has more than 2.5m users, according to a commercial release on Tuesday. It said Wolt’s gross margin – the total volume – was more than $ 2.5bn, per year.
Last year Wolt was the second fastest-growing industry in Europe published by the Financial Times.
Shopping news came as DoorDash also announced they would get a third installment.
It exceeded economists’ expectations, pre-payment and pre-interest rates on interest rates, taxes, lower prices and repayments, but fell to $ 101m in interest – doubling its losses compared to the same period last year. The company said this was due to the price paid to the public last year, as well as the share price.
DoorDash predicts that call volumes will remain unchanged for the rest of the year, and said the revised ebitda could fall anywhere between $ 0 and $ 100m.
“People are coming back to the shops, and the restaurants in the store are seeing a lot,” Xu said. “And that’s why we’re seeing a shift in risk, but I think it’s important to say that fertility is about to end.”
He also said that 12 percent of DoorDash users use the service to purchase items beyond restaurants, starting at number one at the beginning of the year.
Like other financial companies, DoorDash faces the challenge of attracting employees. The company said it had “dashers” of 3m, or shippers, on its platform in the second quarter of this year, but did not release the third number.