This week, despite the issues, DoorDash finally reached European shores after the successful merger with Deliveroo.
The billions of dollars worth of agreement has offered a space for DoorDash to play on the continent. This San Francisco-based delivery firm is now present across Europe – in Italy, Ireland, Belgium, France, and Great Britain, of course – plus in the Middle East and in Singapore. Think of the business dealings of Europe.
Not only this, but DoorDash has also triumphantly acquired SevenRooms, with the deal totalling almost $10 billion.
However, business and financial experts want to show you the other side of the coin. They delved deep into this merger and saw some loopholes. Two points that can honestly say that despite this major acquisition, the United Kingdom still cannot box with big firms. Read on.
Big US, big DooDash
BBC’s business correspondent Simon Jack shares the insights. Jack said this is “the illuminating example” of the opposing fortunes and attractions of the two nations.
Sure, the deal is preparing a presence for DoorDash in over a whopping 40 nations. But what is it for Deliveroo? DoorDash is still on a big win.
Both DoorDash and Deliveroo started out as food delivery services offering people with a convenient and speedy access to their favorite restaurants, so they can fully utilize the capacity of their kitchens. The orders even extended beyond just food, but also nappies, flowers, and pet food.
Also, both have since become a public company, Deliveroo with the London stock market and DoorDash with the New York Stock Exchange.
However, here’s the jolting point. When Deliveroo listed its shares in London, DoorDash was still worth five times as it. About four years later, DoorDash was worth 35 times as much. So interesting.
Price of each share
The second point that the experts shared, saying that the deal could be a “bad deal” is the price of each share.
Jack emphasized this by giving examples. He stated that if there’s this investor who bought a share of DoorDash, seeing its value rise to 84 percent, then this investor who purchased a share of Deliveroo, but seeing it fall to 56 percent in value. See the gap?
Likewise, it also means that DoorDash is currently able to utilize its greater financial heft to take over its rival in the United Kingdom, just as this rival is finally turning in profits.
Then, there are also various reasons that the experts noted, such as the higher valuation, huge disparity, and the old-fashioned lack of demand.
These may be true, but is it really a bad deal? People think it is never a bad deal.
“That’s impressive! Operating in over 40 countries and serving 50 million customers each month is a remarkable achievement. It shows the company’s strong global presence and commitment to meeting the needs of a diverse customer base. I think…” Lura Joseph commented on the Facebook news.
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