Electronic store

DoorDash to acquire in-store technology provider Bbot

DoorDash goes inside the restaurant. The delivery company on Tuesday announced plans to acquire Bbot, a technology provider that creates seamless in-restaurant experiences for customers.

Terms were not disclosed. The acquisition is expected to be finalized by the end of the first quarter.

“We are excited to offer our combined suite to an even broader selection of merchants in the hospitality space – including bars, hotels and ghost kitchens – so these businesses can engage with more customers, grow their quality of service and increase their sales,” said Tom Pickett, Chief Revenue Officer of DoorDash. “Bbot has developed industry-leading features and highly customizable tools that will allow DoorDash to better meet the ever-expanding range of merchant needs.”

Bbot’s technology enables restaurants, shadow kitchens and other food service operators, including bars, breweries and hotels, to offer in-store customers the ability to order using a QR code that quickly displays an interactive online menu for ordering. The company said its merchant brand technology allows restaurants to improve the customer experience while enabling faster table turnaround times and better table utilization even when understaffed.

DoorDash (NYSE: DASH) noted that adding Bbot to its proprietary platform services such as Drive and Storefront will help meet merchant demands for a more integrated and streamlined software solution across their online and offline offerings. .

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“Over the past few years, the hospitality industry has seen the benefits of growing its online channels as well as digitizing its in-store operations,” said Steve Simoni, CEO of Bbot. “Joining forces with DoorDash allows us to scale our solutions faster so that together we can equip more businesses with more cost-effective tools to help them deliver great customer experiences and compete in the digital world of business. ‘today.”

Bbot’s technology works with existing point-of-sale systems, loyalty programs and reservation services. It can be used on multiple types of devices, including handhelds and tablets.

DoorDash reported on Feb. 16 that fourth-quarter 2021 revenue was $1.3 billion, beating analysts’ consensus estimate of $1.28 billion, but it was the fifth consecutive quarter in which the company’s revenue growth was slowing year over year. DoorDash also posted a net loss per diluted share of 45 cents, better than expectations of 23 cents per share. For fiscal 2021, revenue grew 69% year-over-year to approximately $4.9 billion, while net loss remained relatively flat at $468 million.

While investors were generally pleased with the stock, jumping more than $116 per share within a day of the earnings release, the stock is down more than 40% from its IPO price in stock market and some investors wonder if the company will ever turn a profit.

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“We named DoorDash one of the most dangerous stocks for trustees in November 2020 when we called it the most ridiculous IPO of 2020. From the opening price to the date of the IPO in stock is down 43% while the S&P 500 is up 20%, and DoorDash shares could fall another 67%,” a note from Seeking Alpha said Friday.

The memo said the company needed to increase its consensus revenue estimates in 2022 and 2023 and increase revenue by 25% each year through 2030 to justify a price of $104 per share.

Similarly, a Forbes article cited concerns about DoorDash’s path to profitability, but outlined several paths the company could take to reach the goal. This includes entering new vehicles and markets. In November, DoorDash announced it was acquiring international food delivery platform Wolt for $8.1 billion, giving it access to 22 new global markets. The company has also entered into agreements to provide delivery services to retailers such as JC Penney, Dollar General and grocer Albertson’s.

The addition of Bbot further expands its verticals while adding in-store ordering capabilities, giving current DoorDash customers even more options to grow their revenue within a single platform.

Click for more articles from Brian Straight.

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