DoorDash’s M&A Mastery Hinges on Cultural Fit and Global Grit

DoorDash CEO Tony Xu emphasized the complexities of mergers and acquisitions during a recent interview at Fortune Brainstorm Tech, highlighting that while M&A strategies may appear straightforward in theory, their successful execution in practice is fraught with challenges. Xu pointed to the importance of aligning with operating teams that share the company’s values, citing the acquisition of Wolt in 2021 as an example of such alignment. He described the experience as a crucial lesson in the M&A process, where cultural and operational fit can determine the long-term success of a deal [1].

The company has continued to pursue strategic acquisitions this year, including the $1.2 billion purchase of SevenRooms, a marketing-as-a-service platform that provides businesses with a comprehensive view of their customers. Additionally, DoorDash acquired Symbiosys, an ad-tech platform, for $175 million, and entered into an agreement to acquire Deliveroo for $3.9 billion, pending regulatory approval. The Deliveroo deal is expected to close in Q4 2025, underscoring DoorDash’s ongoing expansion strategy across global markets [1].

Beyond M&A, DoorDash has been investing heavily in automation and artificial intelligence. The company has been developing autonomous delivery solutions, including drones and sidewalk robots, since 2017. However, Xu admitted that the process has been challenging, requiring expertise in multiple domains such as hardware, software, network infrastructure, and service quality. He likened the development to mastering a multi-level sport and noted that the company is still in the early stages of building these capabilities [1].

Despite these challenges, DoorDash has made progress in commercializing its autonomous delivery initiatives. The company has partnered with Coco Robotics for robot deliveries in the U.S. and with Alphabet’s Wing for drone deliveries in Australia. Additionally, DoorDash has deployed AI agents in several key areas, including customer service, logistics, and merchant support. One notable application is an AI tool designed to help merchants optimize their advertising and promotions [1].

The company’s expansion beyond food delivery has also contributed to its growth. DoorDash now facilitates deliveries from a variety of retail sectors, including restaurants, grocery stores, pharmacies, and retail shops. This diversification strategy has helped the company climb 49 spots to No. 394 on the Fortune 500. Its Q2 2025 earnings report showed revenue of $3.28 billion, a 25% increase from the previous year, with total orders rising 20% to 761 million [1].

In a recent move, DoorDash announced an exclusive partnership with Waffle House to launch all-night delivery services, marking a first for the chain. The service, available from 9 p.m. to 8 a.m., aims to deliver food within 15 minutes of it being ready, enhancing the overall customer experience [1].

Source: [1] DoorDash CEO Tony Xu: M&A is easy on paper—'very ... (https://fortune.com/2025/09/09/doordash-ceo-tony-xu-ma-easy-paper-very-hard-get-right-practice-cfo/)