July 2, 2024

Dining out

Hi there, 

American Express is getting hungry.

It made 2 acquisitions in recent weeks, both focused on the hospitality industry: Tock, a restaurant reservation platform, and Rooam, a POS software provider for contactless ordering. 

The sudden surge in spending — including $400M for Tock, one of its largest acquisitions ever — isn’t without precedent. 

AmEx has been developing its tech presence in the service industry for years, with notable moves like acquiring Resy in 2019. With platforms like Tock and Resy, American Express can bring more exclusive experiences to cardholders, while also connecting restaurants with a higher-spending customer base.

Restaurant tech integration is a key theme for American Express’ inorganic growth strategy, as highlighted in the Acquisition Insights on AmEx’s CBI profile.

And now, with Tock and Resy under its belt, American Express owns two restaurant reservation management platforms with expansive networks of restaurants and other food-service venues.

As you can see from the restaurant reservation management market report graphic below, the space is crowded.

Of course, American Express’ hospitality strategy goes beyond acquisitions.

So far this year, AmEx Ventures, its corporate venture arm, has backed startups like connected commerce & loyalty startup Superlogic. It also participated in a $700M round to Wonder, which offers high-end restaurant delivery and takeout.

Meanwhile, American Express competitors including Mastercard, Visa, and PayPal have all been incredibly busy on the acquisition, partnership, and investment fronts. Recent acquisitions have taken place in areas like digital wallets, open banking, and cross-border payments.

CB Insights customers can benchmark American Express’ tech strategy against other payments incumbents here.

I love you.

Anand

@asanwal 

P.S. New buyer interviews on CB Insights this week include: 

• Enterprise AI: OpenAI (CSAT: 10/10)
• Semiconductors: AMD (CSAT: 8/10)
• Remote sensing & imaging: Climate-Eyes (CSAT: 10/10)
• AI software development: Cognition AI (CSAT: 8/10)

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