DoorDash's “massive and expensive undertaking”
After two major European acquisitions, the delivery giant has to unite its tech.
DoorDash is starting over. Kinda.
In November, 14-year-old DoorDash warned Wall Street it planned to spend aggressively this year. On Wednesday, CEO Tony Xu detailed the company’s “massive and expensive undertaking” meant to unify its disparate tech. It’s building “a single technology platform that will allow us to better leverage our global scale while still enabling us to offer local audiences the best possible experience.”
Thanks to two major acquisitions in the last five years, DoorDash currently operates three different tech platforms: its own, plus platforms used by Deliveroo, based in London, and Wolt, based in Finland. DoorDash finalized its Deliveroo acquisition in October; then, Xu promised, “the Deliveroo app and products you know and love aren’t going anywhere.” (DoorDash bought Wolt in 2022.)
Together, the services span over 40 countries and powered almost $30 billion in orders last quarter. It is, per Xu, “the largest local commerce platform outside China.”
But they’re still operating on disparate platforms. As Xu said on Wednesday, “This slows us down.”
In a letter to shareholders released on Wednesday, Xu explained DoorDash’s complexity and the large and pricey challenges that come with rebuilding a dynamic logistics system that’s grown by leaps and bounds since its introduction over a decade ago.
“If the complexity of bringing you a burrito1 on time is hard, think about the systems we must build today,’ Xu wrote.
DoorDash’s rebuilt platform, meant to be used across its brands, will include elements from all three services. It should be finished — or mostly finished — sometime this year.
“You’ll be happy with the progress,” Ravi Inukonda, DoorDash’s chief financial officer, assured investors during Wednesday’s call.
Pressed on a timeline for the new tech’s rollout, Xu said, “I wish that the tech sack were already here.”
Here’s what else DoorDash is prioritizing during is high-rolling year: