DoorDash surges on $8 billion takeover deal to jump start international expansion

Shares of DoorDash Inc jumped 16 per cent on Wednesday after the US food delivery firm inked an $8 billion deal to buy Finnish startup Wolt to grab a slice of the European market and maintain its blistering pace of growth.

The deal will help DoorDash enter 22 new markets, including Germany, Denmark and Sweden, while potentially serving about 700 million customers.

“(The move) jump starts international expansion,” BTIG analyst Jake Fuller said, adding that if it were not for the acquisition, it would have taken DoorDash much longer to reach international markets through “an organic build-out.”