Brief: DoorDash to buy food delivery counterpart Wolt for $8.1bn

• US on-demand delivery company DoorDash has agreed to acquire Finnish counterpart Wolt in an all-stock transaction worth €7 billion ($8.1 billion).
• “We have an opportunity to build a global platform for local commerce in the internet era,” DoorDash co-founder and CEO Tony Xu said in a press release. “Joining forces with Wolt will deepen our pool of superb talent and allow us to accelerate our international growth, while elevating our focus on the US.”
• Wolt co-founder and CEO Miki Kuusi will become head of DoorDash International as part of the deal, reporting directly to Xu.
• The acquisition is expected to close in H1 2022, “subject to customary closing conditions […] including applicable regulatory approvals.”
• DoorDash has also announced its Q3 results. Revenue grew 45% year-on-year to $1.3 billion, while the company recorded a net loss of $101 million compared to $43 million in Q3 2020.

Why it matters:

Wolt launched in Helsinki in 2014 as an on-demand takeout app, Today, it operates in 23 countries across Europe and Asia.

Like several other restaurant delivery apps, Wolt pivoted to additional on-demand services during the Covid-19 pandemic, which saw many foodservice establishments shuttered. Among other things, it now delivers groceries, cosmetics, pet food, and medical supplies on demand to users’ homes or workplaces.

Wolt raises $530 million to grow ‘beyond the restaurant’ – read more here

DoorDash — which launched in early 2013 — has similarly expanded into adjacent service areas.

Wolt will be the US company’s second acquisition this year, following its purchase of Chowbotics — the kitchen automation startup behind salad-making robot Sally — in February.