Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.
The US-based on-demand food delivery service DoorDash (NYSE: DASH) is jumping into the European market, after acquiring Finnish food delivery platform Wolt for a total of $8.1B. On the tail of Uber, DoorDash isn’t wasting any time on its growth strategy. DoorDash stock rose 17.4% in Wednesday premarket trading.
The all-stock deal opens the gateway into Europe for the ambitious US delivery service, and hence it isn’t surprising buyers jumped on the stock when the news was released. Wolt currently operates in 23 countries with a workforce of around 4,000 employees – certainly a promising acquisition for a company looking for a European imprint.
The company has been expanding at a promising speed; with this acquisition following a partnership with Rite Aid earlier in the year.
Co-founder and CEO of Wolt, Miki Kuusi, is optimistic about the future:
“DoorDash has built an incredible business in one of the most significant markets in the world, while we came from a small home country and had to master the art of expansion very early on.
“During this process, we’ve come to appreciate the many similarities of our two teams, cultures, and companies, as we’ve been molded by similar circumstances. We’re incredibly excited to be joining forces with Tony and the DoorDash team to build something even greater together.”
CEO of DoorDash Tony Xu is equally pleased:
“By joining forces, we believe we will accelerate our product development, bring greater focus to each of our markets, and improve the value we provide to consumers, merchants, as well as Dashers and couriers around the world.”
The deal has the potential to make a serious impact on the European food delivery market, and with DoorDash already showing an annual gain of 56%, this acquisition has the potential to pump more vigor into the company’s stock in the coming months.
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