DoorDash To Buy Food Delivery Startup Wolt For 7 Bln Euros; Shares Jump 10%

Shares of DoorDash Inc. (DASH) jumped over 10% in after-hours trading on Tuesday after the company announced plans to buy Finland-based food delivery startup Wolt Enterprises OY in an all-stock deal valued at about 7 billion euros.

The company expects to close the deal in first half of 2022. DoorDash said it expects pro forma combined Adj. EBITDA of $0 to $500 million in 2022.

Wolt's team of over 4,000 employees operates a leading local commerce platform across 23 countries, the company said.

"DoorDash and Wolt share a vision to build a global platform for local commerce that empowers the communities we operate in," said Tony Xu, Co-founder and CEO of DoorDash. "Under the leadership of Miki Kuusi, Wolt has built a culture of optimism, operational rigor, and bias for action that matches our own. 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."

Separately, the company announced third-quarter net loss of $101 million or $0.30 per share, wider than last year's loss of $43 million or $0.96 per share. Revenues for the quarter rose to $1.275 billion from $879 million last year.

Analysts polled by Thomson Reuters expected a loss of $0.26 per share on revenues of $1.18 billion for the quarter. Analysts' estimates typically exclude one-time items.

DASH closed Tuesday's trading at $192.01, down $1.14 or 0.59%, on the New York Stock Exchange. The stock, however, gained $19.99 or 10.41% in the after-hours trading.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The Federal Trade Commission or FTC, has sued Walmart for allowing its money transfer services to be used by fraudsters, who fleeced consumers out of hundreds of millions of dollars. The retail giant is alleged to have looked the other way to pocket millions in fees while scammers took advantage of its failure to properly secure the money transfer services offered at Walmart stores. Home improvement retailer Bed Bath & Beyond, Inc. (BBBY) reported on Wednesday a net loss for first quarter that sharply widened from last year, hurt by hefty transient costs related to inventory markdown reserves and port-related supply chain fees. Both adjusted loss per share and net sales missed analysts' expectations. Tesla Inc. laid off about 200 employees in its Autopilot unit as the luxury electric car maker closed down its office in San Mateo, California as part of cost cutting efforts, reports said. The San Mateo office, where employees worked on improving the driver assistance systems, marketed as Autopilot, had about 350 employees before the cut.
Follow RTT