DoorDash expands hospitality tech footprint with US$1.2B acquisition of SevenRooms

GLOBAL – DoorDash has agreed to acquire hospitality software leader SevenRooms for US$1.2 billion in an all-cash deal, aiming to significantly enhance its Commerce Platform by integrating advanced reservation and guest management tools for restaurants and hotels worldwide.

In a strategic move to broaden its capabilities beyond food delivery, DoorDash announced on May 6, 2025, the acquisition of SevenRooms, a New York City-based hospitality technology company specializing in reservation, marketing, and guest experience software.

The US$1.2 billion all-cash transaction is expected to close in the second half of 2025, pending regulatory approvals and customary closing conditions.

SevenRooms, founded in 2011, offers an industry-leading customer relationship management (CRM) platform that empowers restaurants, hotels, and entertainment venues to deepen guest relationships, streamline operations, and boost revenue growth.

Its tools include reservation and waitlist management, revenue optimization, marketing automation, and review aggregation, serving over 13,000 venues globally, including prominent clients like Marriott International, MGM Resorts, and Wolfgang Puck.

DoorDash’s acquisition reflects a deliberate expansion of its Commerce Platform, launched in 2024, which enables merchants to engage customers across multiple channels-online, phone, and in-store-while building direct customer relationships.

Parisa Sadrzadeh, DoorDash’s Vice President of Strategy and Operations, emphasized that integrating SevenRooms’ in-store capabilities will provide local businesses worldwide with enhanced tools to attract more guests, leverage best-in-class CRM, and drive profitability through smarter marketing.

This acquisition marks DoorDash’s first software company purchase since 2022 and complements its broader growth strategy, which also includes the recently announced US$3.9 billion acquisition of UK-based food delivery platform Deliveroo.

Together, these deals position DoorDash as a formidable global player in local commerce, extending its reach into new markets and hospitality segments.

Despite the acquisition news, DoorDash reported first-quarter 2025 revenue of US$3.03 billion, slightly below analyst expectations, with 732 million orders processed-a 21% and 18% year-over-year increase, respectively.

Following the announcement, DoorDash shares declined about 5%, reflecting investor caution amid the aggressive expansion.

By combining DoorDash’s digital scale and delivery expertise with SevenRooms’ hospitality software, the company aims to create a seamless omnichannel commerce experience that benefits merchants and consumers alike, spanning first-party and third-party sales channels.

The deal is expected to accelerate innovation and expand SevenRooms’ global reach, unlocking new growth opportunities in the rapidly evolving hospitality sector

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.