DoorDash's Global Gambit: Can Aggressive Acquisitions Secure Its Future?

The food delivery market has long been a battleground for tech giants, but DoorDash's recent string of acquisitions signals a bold ambition: to transcend its original niche and become a global leader in “local commerce.” From its $3.9 billion takeover of Deliveroo in May 2025 to its $1.2 billion acquisition of hospitality tech firm SevenRooms, DoorDash is placing big bets on diversification and geographic expansion. But is this strategy a masterstroke—or a high-stakes gamble?

The Global Ambition: Deliveroo and the European Play

DoorDash's acquisition of Deliveroo is its most significant move yet. By swallowing the UK-based rival, DoorDash gains access to 40+ countries, including high-growth markets like France and Italy. The deal's £2.9 billion price tag—44% above Deliveroo's recent share price—hints at DoorDash's urgency to consolidate its position against rivals like Uber Eats and Just Eat Takeaway.

The strategic logic is clear: scale breeds efficiency. Combined, the two firms generated £90 billion in annual Gross Order Value (GOV) in 2024, with Deliveroo contributing £7.1 billion in GTV. Yet the risks are equally stark. Merging two complex logistics networks—Deliveroo's 176,000 partner businesses and DoorDash's 500,000—could lead to integration headaches. Regulatory hurdles loom, too: the EU's antitrust regulators have already raised concerns about similar mergers.

Diversification Beyond Food: SevenRooms and the Commerce Platform Play

DoorDash's move into hospitality tech with SevenRooms reveals a deeper ambition: becoming a one-stop shop for businesses. SevenRooms' CRM tools allow restaurants to track customer preferences, manage reservations, and boost repeat visits—a capability DoorDash's delivery app alone couldn't provide. This integration positions DoorDash to capture a larger slice of merchants' revenue streams, from in-store sales to loyalty programs.

But here's the catch: DoorDash is now competing in a crowded space. Companies like OpenTable and Toast already dominate restaurant tech. To win, DoorDash must prove its ability to synergize its platforms seamlessly. A failure here could leave SevenRooms as a costly distraction.

The Reward: A $1+ Trillion Market Opportunity

The math is undeniable. DoorDash's Q1 2025 revenue surged to $3.03 billion—a 21% jump from 2024—with net profit turning positive at $190 million. These results validate its strategy: expanding geographically (via Deliveroo) and vertically (via SevenRooms) has already paid dividends.

The prize? Analysts estimate the global local commerce market could hit $1.2 trillion by 2027. By combining food delivery, grocery, and hospitality tech, DoorDash aims to capture a dominant share. Its moves into drone delivery (partnering with Wing) and “Buy Now, Pay Later” integrations (via Klarna) further underscore its vision of a frictionless consumer experience.

The Risk: Overextension and Regulatory Blowback

Yet DoorDash's aggressive expansion isn't without pitfalls. Its $8.1 billion Wolt acquisition (2022) took years to integrate smoothly. Will Deliveroo's European operations fare better? Regulatory scrutiny is also escalating: the EU's Digital Markets Act now classifies DoorDash as a “gatekeeper” firm, requiring it to share data and avoid anti-competitive practices.

Meanwhile, competitors aren't sitting idle. Uber's $700 million stake in Turkey's Trendyol Go and Just Eat Takeaway's expansion into Asia are direct counterpunches. If DoorDash's execution falters, its valuation could crumble.

The Bottom Line: A Buy, Hold, or Sell?

For investors, DoorDash's story hinges on execution. The company is betting its future on two pillars: operational synergy (Deliveroo) and platform diversification (SevenRooms). If it can merge these assets without overextending, the rewards are massive.

Investment Takeaway:
- Buy: For those who believe DoorDash can execute its integration and dominate local commerce. Its Q1 2025 results and $1.2T market opportunity make it a compelling long-term play.
- Hold: For investors wary of regulatory risks or valuation concerns. DoorDash's current stock price may already reflect much of this optimism.
- Avoid: If you doubt its ability to manage cross-border operations or compete against entrenched rivals.

Final Thought: A Test of Strategic Discipline

DoorDash's acquisitions are more than deals—they're a high-stakes experiment in corporate evolution. The company is betting that geographic and vertical diversification will shield it from competition and economic volatility. But as history shows, empires are built on execution, not just vision. Investors would be wise to monitor DoorDash's integration timelines, regulatory approvals, and margin expansion closely. The future of local commerce hangs in the balance—and DoorDash's choices today will determine whether it leads the next chapter or becomes a cautionary tale.