DoorDash Plans to Acquire Hospitality Tech Firm SevenRooms
DoorDash is preparing to acquire New York City-based hospitality tech company SevenRooms.
The company characterized the deal as “a significant expansion of DoorDash’s Commerce Platform capabilities,” according to a Tuesday (May 6) press release.
“We’re enhancing the DoorDash Commerce Platform to help merchants serve their customers across all channels,” Parisa Sadrzadeh, vice president of strategy and operations at DoorDash, said in the release. “With SevenRooms, we’re excited to give local businesses around the globe new ways to bring more guests in the door, build and grow direct relationships with their customers, access best-in-class CRM, and drive profitability through smarter marketing.”
DoorDash introduced its commerce platform in September, featuring tools “that allow merchants to create direct channels — whether through online, phone or in-store ordering — and build lasting, direct relationships with their customers,” Prabir Adarkar, president and chief operating officer at DoorDash, said at the time.
The platform helps merchants operate their businesses on their own channels, in-store or online, and features tools that allow merchants to offer delivery through their own apps or websites, online ordering, phone ordering via an artificial intelligence-powered system, and more.
Launched in 2011, SevenRooms offers tools for marketing, operations and guest experience — integrated with its customer relationship management (CRM) — to help restaurants, hotels and hospitality companies strengthen guest relationships, streamline operations and drive revenue growth, per the release.
“The combination of DoorDash’s scale, reach and proven track record of digital innovation with SevenRooms’s in-store capabilities will enhance merchants’ ability to drive growth across both first-party and third-party channels,” the release said.
The news came as consumers in the United States dine out less often amid increasing financial pressures. Wendy’s CEO Kirk Tanner said Friday (May 2) the company expects that pressure to persist for the remainder of the year. Meanwhile, Fiserv’s small business spending report published Monday (May 5) said Americans are dining out less often or spending less when they do dine out.
DoorDash’s deal with SevenRooms is expected to close in the second half of the year, assuming all regulatory approvals and closing conditions are met, according to the press release.
It happened the same day DoorDash said it reached an agreement to acquire U.K.-based food delivery platform Deliveroo, a deal worth $3.9 billion. The announcement followed reports late last month that the companies were in talks about a possible purchase.
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