SAN FRANCISCO and HELSINKI—DoorDash had acquired Finnish food delivery company Wolt Enterprises OY, marking the largest merger in the food delivery industry, the companies said in a news release. Last year, Grubhub merged with Europe’s Just Eat Takeaway.com, and Uber purchased Postmates.
Wolt has 4,000 employees and operates in 23 countries. When the acquisition closes, Wolt Co-founder and CEO Miki Kuusi will run DoorDash International, reporting to Tony Xu, co-founder and CEO of DoorDash.
“Under Miki's leadership, we expect to increase our international scale, accelerate our product development and improve our investment efficiency,” said the release. “We expect to continue investing aggressively in the combined team to build our platform and grow our global business.”
Additionally, DoorDash has partnered with Caviar to expand shipment from certain restaurants around the U.S., reports CNN. DoorDash and Caviar app users now have a “nationwide shipping” option on both apps, and users can place an order with a participating restaurant. Delivery from the restaurant will take about 2-4 days, and DoorDash pays the delivery fee normally imposed by Caviar.
"Our strategy has been to go deeper with the restaurants," DoorDash president Christopher Payne told CNN Business. DoorDash also sees the move as a way to be "more engaging for the consumer," he said.
About 100 restaurants, florists and other businesses are included in the program, including New York City's Carbone and Katz's, Big Shake's Nashville Hot Chicken, Los Angeles' Chocolate and the Chip, Xiao Chi Jie in Bellevue, Wash., and H&H Bagels, also in New York.
The pandemic has increased consumers’ desire to order anything from a burger to snacks to drinks to toothpaste at the touch of a button. DoorDash is partnering with grocery stores around the U.S. to offer a virtual convenience store delivered in as fast as 30 minutes. Dollar stores are also partnering with Instacart for quick delivery, creating more competition with convenience retailers for the share of budget-conscious shoppers’ wallets when it comes to beverages, snacks and grocery staples. DoorDash also expanded its logistics partnerships, delivering orders placed directly on the websites of retailers like Walmart and Macy’s.
The issue of access to customer data when restaurants and convenience stores use third-party delivery services like DoorDash has grown contentious. Businesses that rely on the third-party model want to ensure the best customer service, reduce fees associated with the partnerships and access to customer data to help with marketing and loyalty programs. NACS Magazine covered the tradeoffs between using third-party delivery services and using store-owned services in “Delivery Dilemma” in the September 2021 issue.