DoorDash buys Wolt to expand in Europe as Q3 sales rise

DoorDash is buying Finnish transportation work Wolt Enterprises, expanding its scope into Europe and different markets.

The $8.1 cardinal woody announced Tuesday volition bring DoorDash into 22 countries wherever it doesn't presently operate, including Germany, Sweden, Hungary and Israel.

The combined companies volition scope 700 cardinal people, DoorDash CEO Tony Xu said.

“We judge these markets supply an accidental to turn our planetary concern to multiples of what it is today," Xu said successful a league telephone with investors. “This should let america to put and grow much efficiently than we could person done connected our ain and connected a faster timeline.”

Japan is the lone marketplace successful which some DoorDash and Wolt overlap.

San Francisco-based DoorDash Inc. was wide expected to articulation forces with a European state successful the highly competitory and rapidly consolidating transportation market. Amsterdam-based Just Eat Takeaway gobbled up Grubhub successful a $7.3 cardinal woody announced past year.

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Wolt has 4,000 employees, but DoorDash wouldn't accidental however galore drivers marque deliveries for the company. The company's gross bid volumes deed an yearly tally complaint of $2.5 cardinal astatine the extremity of the 3rd quarter. By comparison, DoorDash said its gross bid volumes roseate 44% to $10.4 cardinal successful the 3rd quarter.

Wolt co-founder and CEO Miki Kuusi volition tally DoorDash International erstwhile the transaction closes, apt successful the archetypal fractional of 2022.

Kuusi said Wolt has already conquered the hard marketplace of Finland, wherever determination is debased lawsuit consciousness of delivery, precocious wage for drivers and debased density successful cities, which makes it harder to marque a profit.

“Every different state was a batch easier to do,” Kuusi said.

DoorDash's shares soared 19% successful after-hours trading.

The quality came arsenic DoorDash reported higher-than-expected third-quarter sales.

The transportation institution said gross grew 45% to $1.26 cardinal successful July-September from the aforesaid play a twelvemonth ago. That bushed Wall Street’s forecast of $1.17 billion, according to analysts polled by FactSet.

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The institution said it had a grounds 9 cardinal DashPass subscribers astatine the extremity of the quarter, up from 5 cardinal astatine the aforesaid clip past year. DashPass members, who wage $9.99 per period for escaped deliveries connected astir orders, thin to bid much frequently, the institution said.

DoorDash said it besides grew income by adding non-restaurant partners similar Bed Bath & Beyond and Total Wine successful the 3rd quarter. Xu said 12% of the company's progressive users are present trying non-restaurant delivery, up from conscionable 1% successful the archetypal 4th of this year.

Its nett nonaccomplishment widened to $101 cardinal for the 4th from $43 cardinal a twelvemonth ago, arsenic it continued to walk heavy connected expansion. The nonaccomplishment amounted to 30 cents per share. Wall Street had been forecasting a nonaccomplishment of 10 cents a share.

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