Wolt Explained

Wolt Enterprises Oy
Founded: in Helsinki, Finland
Trading Name:Wolt
Type:Private
Parent:DoorDash

Wolt Enterprises Oy,[1] [2] trading as Wolt, is a Finnish food delivery company known for its delivery platform for food and merchandise. On Wolt's apps (iOS and Android) or website, customers can order food and household goods from the platform's restaurant and merchant partners, and either pick up their order or have it delivered by the platform's courier partners. Wolt also runs its own chain of grocery stores called Wolt Market.[3] Wolt is headquartered in Helsinki.[4]

In May 2022, Wolt was acquired by the American food delivery company DoorDash. DoorDash operates in 29 countries today, 25 of which are with the Wolt product and brand.

History

Wolt was founded in 2014 by 6 founders, including Miki Kuusi, the former CEO of Slush and CEO of Wolt. Kuusi has been responsible for DoorDash's business outside the US since May 2022, when DoorDash acquired Wolt.[5] As of May 2023, Wolt operates in 25 countries and over 300 cities, including Helsinki, Tokyo, and Berlin. Wolt has over 70,000 merchant partners, 150,000 courier partners and 20 million registered customers.[6] Wolt has over 7,000 employees across its offices in 25 countries.[7]

In November 2021, it was announced that Wolt was being merged into DoorDash through an exchange of shares, giving Wolt shareholders a minority of shares in DoorDash for a deal worth US $8.1 billion. On 31 May 2022, the acquisition was completed.

Before the DoorDash acquisition, Wolt raised $856M in funding from investors including ICONIQ Capital, Highland Europe, 83North, EQT Ventures, Tiger Global, DST Global, Prosus, KKR,[8] Coatue, Inventure, Lifeline Ventures, Supercell founder & CEO Ilkka Paananen and Nokia Chairman Risto Siilasmaa, among others.

Wolt was ranked second in the 2020 edition of the FT:1000 Europe's Fastest Growing Companies 2020 published by the Financial Times.[9]

Timeline

Drivers

Wolt delivery drivers do not work for the company (except in Germany) but are self-employed and can decide when, where and how much they work. As self-employed, couriers must pay all the incidental costs of their work, such as pension contributions, social security and tooling costs, out of the salary they receive. Their pension and sickness cover in Finland is typically provided through the YEL insurance (Entrepreneur's Pension Insurance), possible after 4 months, and obligatory by Finnish law after 6 months, if yearly YEL income is at least EUR 8,575.45.[16] For example, when using a car, petrol, insurance and other costs are borne by the entrepreneur. As self-employed persons, couriers do not receive paid holidays. According to Wolt, about a third of the couriers are full-time. About a quarter are students. There is a significant proportion of immigrants in Helsinki, for example.[17] [18]

Critical aspects

At least in Germany, the German Hotel and Restaurant Association Dehoga recommends, that restaurants should not participate in delivery services which, like Wolt, "intervene in the restaurants' own pricing policy", "taking a provision of 30%", a self-organized delivery would be the better option, if possible. Also they see the danger, that through gaining all delivery data, the services may build up competing kitchens, serving the most-wanted dishes, letting the restaurants go away empty-handed, in the long run, like some services already do.[19]

With the riders who are responsible for the delivery, including expenses for their needed material and anything else, a regular employer would have to burden, not being employed by Wolt directly, they often are at the mercy of other dubious employers.[20]

Notes and References

  1. Web site: 2014-10-29 . Wolt Enterprises Oy :: Finland :: OpenCorporates . 2024-04-14 . OpenCorporates.
  2. Web site: Wolt Enterprises Oy - YTJ:n yritys- ja yhteisöhaku . 2024-04-14 . tietopalvelu.ytj.fi.
  3. News: Wolt Market Reduces Prices of Nearly 100 Staple Grocery Items by 15% - BBJ . BBJ.hu.
  4. News: Wolt to expand to 15 new communities near Rishon, Rehovot . The Jerusalem Post.
  5. News: Sterling . Toby . 1 June 2022 . DoorDash sees tepid Q2 for Wolt as it completes $3.5 bln takeover. Reuters . 8 February 2023.
  6. Web site: 3 June 2021. About. Wolt.
  7. Web site: 9 November 2021 . DoorDash Joins Forces with Wolt . ir.doordash.com.
  8. Web site: Food delivery platform Wolt raises $500m from global investor group . 2024-04-16 . Sky News . en.
  9. Web site: Kelly. Maxine. FT 1000: the fourth annual list of Europe's fastest-growing companies. 2 March 2020. Financial Times. 23 March 2020.
  10. News: Wolt delivers the goods with robots . 28 November 2016 . Good News from Finland.
  11. Web site: Starship hakkab Tallinnas toitu koju tooma . 28 November 2016 . Arvutimaailm . et.
  12. Web site: About – Wolt . 17 November 2022 . wolt.com.
  13. Web site: Wolt expands further in Europe . Ecommerce News . 15 May 2023.
  14. Web site: Wolt food delivery service launches in Luxembourg . RTL Today . 29 February 2024.
  15. Web site: Wolt expands further in Europe . Albanian Daily News . 13 March 2024.
  16. Web site: 2023-12-17. Ilmarinen. Who is YEL insurance for and when?.
  17. Web site: 2019-11-18. Iltalehti.fi. Voiko ruokalähetti muka tienata 4 000 e/kk? Järjestön laskelma paljastaa karun totuuden palkasta.
  18. Web site: Wolt Blog. Miten lähetin eläketurva, sairausvakuuttaminen ja työttömyysturva toimivat?.
  19. Web site: 2020-12-28. Tagesspiegel. de. Lieferando and Wolt criticized: How food delivery services profit from the plight of restaurants (Lieferando und Wolt in der Kritik: Wie Essens-Lieferdienste von der Not der Restaurants profitieren).
  20. Web site: 2023-04-05. Capital. de. PROTEST OF THE WOLT-RIDERS Hundreds of thousands of euros in unpaid wages and nobody wants to be responsible (PROTEST DER WOLT-RIDER Hunderttausende Euro offene Löhne und niemand will verantwortlich sein).