DoorDash Enters Reservation Wars

DoorDash's foray into reservations is backed by its $1.2 billion acquisition of SevenRooms, a restaurant CRM platform. This strategic purchase provides DoorDash with the technology to manage guest data and table inventory, aiming to create a unified view of customer behavior across both delivery and dine-in experiences. The new service is integrated into the DoorDash app under a feature called "Going Out." The move pits DoorDash against entrenched industry leaders. OpenTable, founded in 1998 and now owned by Booking Holdings, is the long-standing market leader, with an estimated 46% of the U.S. market share and a network of over 60,000 restaurants. Its main competitor, Resy, was launched in 2014 and acquired by American Express in 2019, positioning itself as a platform for sought-after dining experiences. Resy holds approximately 12% of the market and is set to expand its reach to 25,000 venues by integrating Tock, another platform acquired by American Express. For diners, DoorDash is sweetening the deal with a loyalty program. Users can earn $10 in credits for every reservation they book and attend, with DashPass members receiving $12 back. These credits can be applied to future DoorDash orders. DashPass subscribers also gain access to exclusive tables at popular restaurants and discounted Lyft Black rides to their reservations. The battle for diners is extending to exclusive, one-of-a-kind culinary events. In Miami, DoorDash has offered reservations for a multi-course omakase experience at the Michelin-starred restaurant, Shingo, and access to the celebrity hotspot Papi Steak. In New York, users could book tables at hard-to-get restaurants like The Corner Store and even a special truffle tasting at Roscioli. The global restaurant reservation software market was valued at over $6.5 billion in 2024 and is projected to grow to more than $16.4 billion by 2032. This growth is fueled by increasing diner demand for digital convenience and restaurants' need to optimize operations. Over 75% of restaurants now accept reservations, with the majority of diners preferring to book online. This new front in the "reservation wars" is expected to intensify competition, forcing platforms to offer more value to both restaurants and consumers. Analysts anticipate that the competition will increasingly focus on loyalty programs and exclusive access to high-demand restaurants. The trend is toward creating a comprehensive digital dining platform that caters to every aspect of the customer journey, from discovery and booking to payment and rewards.