DoorDash Eyes European Acquisition Or Expansion
On the heels of a successful public offering, the biggest food-delivery business in the U.S. has its sights set on expanding into Europe, Bloomberg reported Thursday (April 29), citing sources.
DoorDash has no presence in Europe and could seek to move into that region either on its own or via the acquisition of smaller rivals competing in the crowded European market. The Silicon Valley startup has already made inquiries, the sources said, per Bloomberg. The food delivery platform is particularly eyeing the market in Germany and the U.K., according to one source.
Aside from possible acquisitions, two sources told the news outlet that DoorDash could independently enter the region or could end up scrapping the plans altogether.
Europe has a growing number of startups that offer various takes on small-scale grocery delivery while the U.K. is a leader in larger, weekly delivery, Bloomberg reported.
Getir, a digital retail delivery platform in Turkey, along with Gorillas, a grocery delivery app in Germany, have both reached unicorn status of $1 billion-plus. London’s Deliveroo teamed with grocer Waitrose and 150 of its shops across the U.K.
With 55 percent of the food-delivery market in the U.S., DoorDash is the biggest contender in the country and last summer teamed with Meijer and Wegmans. The startup is also in Canada and Australia.
Earlier this week, DoorDash announced new pricing structures for its restaurant partners after being criticized for its high commissions. Included will be delivery plans starting at 15 percent and pickup at 6 percent.
The company’s first earnings report in February as a newly-public entity showed a 226 percent increase in the fourth quarter from the company’s $298 million in 2019. On the flip side, losses doubled and the company saw losses of $2.67 per share. The combined revenue boost and loss accumulation is part of a plan to maximize scale and long-term profit, according to Prabir Adarkar, chief financial officer of DoorDash.