Online food ordering and food delivery platform DoorDash
Founder and CEO of Wolt Miki Kuusi is expected to take charge of DoorDash International, which contains around 4,000 employees and runs in 23 different countries. Wolt has been recorded to have over 10 million users ever since this past January.
To this day, Wolt has accumulated over $850 million, according to its profile on Crunchbase. It stands as DoorDash's sixth acquisition, as well as the second in the year 2021. This particular acquisition is significant because it demonstrates how local food and convenience delivery wars will be spread worldwide. The shares of DoorDash have skyrocketed by over 17% throughout off-hours trading, which is also assisted by an earnings beat.
At Gordon Haskett, analysts say that this acquisition will help to grow DoorDash's movement toward international restaurants, retail, and grocery systems by several years, but has lowered the stock from a buy to a hold, as well as changed the price target from $243 to $233.
"But, with near zero insight into Wolt's financials, supporting DoorDash's relative valuation premium following a near 20% share price jump on the news is not feasible at this time," the Gordon Haskett analysts said. The Gordon Haskett analysts have also revealed that adding the Wolt team would permit DoorDash management to keep attention on the U.S. market. Because of its "focus on execution/efficiency, scrappy culture, strong retention and frequency," according to the analysts, makes it a solid partner.
The acquisition of Wolt will surely cause expansion in DoorDash's movement to grow across the world. According to business analysts, adding Wolt in will cause DoorDash management to remain focused on the United States market, thus causing it to be a strong collaboration.
- https://ir.doordash.com/news/news-details/2021/DoorDash-Joins-Forces-with-Wolt/default.aspx
- https://www.cnbc.com/2021/11/10/doordash-stock-up-on-wolt-acquisition-news-.html
- https://techcrunch.com/2021/11/09/doordash-to-acquire-food-delivery-company-wolt/
- https://www.axios.com/doordash-agrees-to-buy-european-delivery-company-wolt-4e1873d8-a509-4789-b16c-088e762ba8e9.html