DoorDash Agrees to Buy Grubhub Campus Dining for $300 Million and Invests $125 Million in Wonder - TechStock²
Article excerpt
DoorDash’s new partnership with Wonder has two financially different pieces: a $300 million agreement to buy Grubhub Campus Dining and a separate $125 million investment in Wonder’s Series D round. The investment gives DoorDash exposure to Wonder’s broader restaurant and food-technology platform; the acquisition would put a specialized campus-ordering network inside DoorDash. The companies announced the transactions on September 15. DoorDash shares traded at $195.94 at 3:16 p.m. New York time on Wednesday, down 1.2% from Tuesday’s close of $198.26, according to market data for Nasdaq-listed DASH. That modest decline does not isolate a verdict on the deal, but it puts the capital commitment in context during the first full session after the announcement. Grubhub Campus Dining, formerly known as Tapingo, connects meal plans, campus dining locations and on-campus restaurants. Students can order through an app or kiosk, pay with campus dining dollars and schedule a pickup. The business is live at more than 450 colleges and universities, the companies said. That installed base is the strategic asset. Campus dining requires integrations with university payment systems and food-service operations that a general delivery marketplace does not automatically possess. DoorDash plans to expand the service in the United States and eventually take Tapingo’s technology into stadiums...
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In the June quarter, total orders rose 27% year over year to 970 million, marketplace gross order value increased 36% to $33.08 billion and revenue climbed 36% to $4.45 billion.
