DoorDash to acquire hospitality platform SevenRooms for $1.2 billion; misses out on Q1 revenue expectation

DoorDash has announced an agreement to acquire SevenRooms for $1.2 billion. SevenRooms is a New York City-based software company and a global leader in hospitality technology . The acquisition aims to significantly expand DoorDash’s Commerce Platform capabilities. This will equip merchants globally with new tools to grow in-store and delivery sales, build stronger customer relationships, and increase profitability. The acquisition is expected to close during the second half of 2025, subject to customary conditions and regulatory approvals. Apart from announcing the acquisition, the US-based online food delivery platform also reported its first-quarter revenue that missed expectations. According to a report by CNBC, the company’s shares also fell 5% after it announced the acquisition.

“We’re enhancing the DoorDash Commerce Platform to help merchants serve their customers across all channels. 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,” Parisa Sadrzadeh, VP of Strategy and Operations at DoorDash, said in a blog post while talking about the acquisition.


How SevenRooms’ acquisition will help DoorDash

Founded in 2011 by Joel Montaniel, Allison Page and Kinesh Patel, SevenRooms provides restaurants, hotels and other hospitality businesses with integrated tools for marketing, operations and guest experience—powered by its industry-leading CRM.

DoorDash claimed that the acquisition of SevenRooms will allow it to combine its digital scale and reach with SevenRooms’s in-store capabilities, enhancing merchants’ ability to grow via both first- and third-party channels.

DoorDash has also promised that SevenRooms will gain greater resources and global reach to accelerate innovation as part of the company.

In the first quarter, the company reported a revenue of $3.03 billion, a 21% increase from the same period a year ago. The company facilitated 732 million total orders during the quarter, marking an 18% year-over-year rise, in line with StreetAccount analysts’ expectations of 732.7 million orders.