DoorDash has acquired advertising technology company Symbiosys for US$175 million.

This acquisition aims to enhance DoorDash’s advertising capabilities, which have exceeded US$1 billion in annual revenue.

Symbiosys, founded by former Google ads product director Bashar Kachachi, specializes in managing ad placements on platforms such as Google, YouTube, Facebook, Instagram, and Pinterest.

The deal will allow DoorDash to broaden its advertising services beyond its own app and website.

It will also offer brands tools to manage external ad campaigns.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ DoorDash’s acquisition strategy has evolved from technology to revenue diversification

The company’s acquisition approach reveals a strategic evolution over the past five years that mirrors its business maturation.

In 2019, DoorDash acquired autonomous driving startup Scotty Labs and food ordering platform Caviar for $410 million, focusing primarily on technological capabilities and premium restaurant partnerships 1.

Today’s Symbiosys acquisition, alongside recent purchases of Deliveroo ($3.9 billion) and SevenRooms ($1.2 billion), demonstrates a shift toward revenue diversification beyond its core delivery operations.

This reflects DoorDash’s maturation from a growth-focused startup to a multi-faceted platform seeking higher-margin business lines to complement its delivery network.

The company’s willingness to spend $5+ billion on acquisitions in 2024 alone indicates both confidence in its core business and recognition that additional revenue streams are essential for long-term profitability.

2️⃣ Advertising has become a critical battleground in the delivery platform wars

The pursuit of advertising revenue has intensified among delivery platforms, with DoorDash’s $1 billion ad business now competing directly with Uber’s $1.5 billion ad operation 2.

Instacart generated approximately $740 million in advertising revenue in 2022 and was projected to reach $1.14 billion in 2023, highlighting the significant revenue potential in this space 3.

These platforms are particularly attractive to consumer packaged goods (CPG) brands because they offer valuable first-party purchase data that demonstrates direct return on advertising spend.

DoorDash’s acquisition of Symbiosys provides capabilities to manage ad placements across major platforms like Google, YouTube, and Meta, directly challenging the recent advertising partnership between Uber and Instacart 4.

This competitive dynamic explains why all three major delivery platforms are investing heavily in advertising technology despite continued operational losses in their core delivery businesses.

3️⃣ Delivery platforms are pursuing higher-margin business models amid profitability challenges

Despite their massive market capitalizations (over $200 billion combined for Uber, DoorDash, and Instacart), these companies continue to struggle with profitability in their core delivery operations 2.

DoorDash reported an operating loss of $579 million in 2023 despite impressive growth in gross order value, highlighting why high-margin advertising revenue has become strategically vital 2.

The retail media advertising market is projected to reach $166 billion this year, representing 21.6% of global digital ad spending and offering significantly better profit margins than delivery services.

By acquiring specialized advertising technology, DoorDash can capture more value from each transaction while creating additional revenue streams that don’t depend on the thin margins of food delivery.

These moves demonstrate how delivery platforms are evolving from simple logistics operations to multi-faceted commerce and advertising ecosystems that monetize their customer relationships in multiple ways.

Recent DoorDash developments

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