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DoorDash Services Expand to Bars, Hotels, And More Through Latest Acquisition

  • Nadine Ghiran - SUBTA
  • Mar 3, 2022
  • 4 minute read

DoorDash, the leading U.S. last-mile logistics platform, officially agreed to acquire the hospitality technology startup Bbot on March 1 for an undisclosed amount.

“We’re excited to bring our combined suite to an even wider selection of merchants across the hospitality space – including bars, hotels, and ghost kitchens – so these businesses can engage with more customers, increase their quality of service, and grow sales,” said Tom Pickett, DoorDash’s Chief Revenue Officer, in the press release.

Read on to learn more about the acquisition, DoorDash’s innovative capabilities, and how the company is striving to improve the customer experience through collaborations.

Bbot Enhances DoorDash Services

Bbot’s solutions will enhance DoorDash’s services to create a more seamless in-store ordering experience for customers and DoorDash restaurant partners.

One of Bbot’s features enables guests to scan a QR code with their phone to view the menu of a DoorDash merchant, order, and pay instantly. Additionally, customers can place orders with other guests on an open tab. 

Photo credit: Bbot

“Just as customers benefit from shorter wait times to order and pay, staff benefit from faster table turnaround times and greater focus on service,” according to DoorDash’s press release. “Merchants also have the ability to utilize all their tables and extend their hours even when faced with staff shortages.”

Part of the acquisition allows businesses to use Bbot’s services at no cost through August 31, 2022.

Innovation at its Finest

More than 550,000 merchant partners use DoorDash’s services. The company has accrued close to $30 billion in sales for its merchants, according to its Q4 2021 shareholder letter.

“These results are the output of our focus on providing a range of services that help merchants more easily connect with consumers, so they can focus on what they do best,” wrote Tony Xu, CEO of DoorDash, and Prabir Adarkar, Chief Financial Officer.

The company also recently integrated its Storefront product with Google, enabling local commerce brands to increase their sales through orders that can be directly placed via the search engine.

“Customers are already searching on Google to learn more about a restaurant and this integration helps restaurants grow their online business even further by streamlining the ordering experience,” said Pickett in a press release.

Photo credit: DoorDash

Improving The Subscription Experience Through Acquisitions

 

The world has shifted since the onset of Covid-19, and so have consumer behaviors.

Brands in the subscription space should be looking for areas of opportunity to collaborate and cater to the needs of their customers. In 2020, Ipsy acquired BoxyCharm in an effort to enhance its product offering and the consumer experience through personalization, community engagement, and more. The acquisition formed BFA Industries — a powerhouse in beauty innovation. 

Through its acquisition of Bbot and its Google integration, DoorDash is making strides to revolutionize the hospitality industry.

One of its first restaurant partners, Modern Market, was able to increase its sales and expand its customer reach using DoorDash in comparison to other third-party logistics providers.

“We weren’t on any other third-party platforms up until 2019,” said Erinn McCully, Director of Off-Premise Sales at Modern Market. “If you wanted delivery from Modern Market you had to go to DoorDash. That was such a great partnership for us because it grew that sales channel [on the DoorDash platform] 3x that amount for Modern Market compared to other partners.”

Similarly, The Flower Shop diversified its customer reach and delivery capabilities, resulting in a 10% profit margin increase. “We try to be where the customer wants us to be, in a very competitive market — and partnering with DoorDash to expand our delivery capabilities helps us do that,” said Bilal Sabusa, Owner of The Flower Shop.

In 2021, nearly 30% of restaurants were looking for cooks while another 17% were seeking servers, according to 7shifts. Bbot’s acquisition enables DoorDash to provide support to its merchants at a time where help is difficult to find while simultaneously improving the customer experience, according to Pickett.

CRV, a venture capitalist firm with stake in DoorDash and Bbot, explained why this acquisition is the logical next step for the last-mile logistics platform on Twitter. “This week two awesome CRV backed companies @DoorDash @MeetBbot combine forces to empower restaurateurs and other food and beverage operators. Congrats to both teams. This acquisition is a win-win for the industry.”

Want to learn more about DoorDash and its impact on the subscription industry? Connect with Max Nimaroff, General Manager of the DoorDash Subscriber Experience, at SubSummit 2022 in Orlando, Fla. this June!

Key Takeaways:

  • DoorDash acquired Bbot for an undisclosed amount on March 1.
  • The local commerce platform and technology company also recently integrated its Storefront product with Google.
  • Bbot’s digital ordering solutions will be added to DoorDash’s platform to create an innovative ordering experience for customers.
  • DoorDash’s Google integration will also help local commerce brands increase their sales.

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