DoorDash stock surges after Wolt acquisition

DoorDash has seen its share price surge after announcing yesterday it was acquiring Finnish food delivery platform Wolt for $8.1 billion.

The acquisition marks the US delivery giant’s first foray into Europe as it takes aim at market leaders Just Eat Takeaway.com, Deliveroo and Uber Eats.

The announcement prompted the company’s share price to soar 24 per cent in after-house trading.

Wolt employs around 4,000 workers and operates in 23 countries while serving over 10 million users.

Once the deal closes in the second interim of next year, Wolt founder and chief executive Miki Kuusi will run DoorDash International.

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The announcement came as part of DoorDash’s third-quarter earnings report, in which it reported a net loss of $101 million.

The figure is more than double the $43 million it lost in Q3 of last year.

DoorDash has also claimed that the number of new consumers acquired in the latest quarter was down compared to its peak level last year, however it remains “well above” 2019 figures.

Total order increased by 47 per cent to 347 million.

The company also reported 500,000 partner merchants, saying it continues to add at a “pace that is faster than pre-pandemic levels.”

Adjusted earnings before interest, tax depreciation and amortisation (EBITDA) reached $86 million, marking a 24 per cent increase when compared with Q2.

DeliveryIPOs & InvestmentNews

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