Rover, the TaskRabbit for pets, sells for $2.3B as Americans splurge on their furry friends
Rover’s got a new owner…The largest online pet-care marketplace is getting scooped up by investment giant Blackstone for $2.3B in cash (a big premium). Rover’s pet-care app lets owners book vetted dog walkers, day care, and overnight sitters for their pups and cats (folks going on vacay leave Rover workers their house keys). Rover went public through a SPAC merger in 2021, and has been used to book 93M pet services by 4M people. Now Blackstone wants to cash in on the fur frenzy and take Rover private.
Treat-worthy: Rover dropped strong earnings last month, with Q3 revenue surging 30% to $66M. Meanwhile, shares of Petco sank this week after the retailer posted a surprise loss. Chewy drops earnings next week after posting 14% sales growth in Q2.
Organic kibble: Blackstone said Rover has “a significant runway for growth” as people place a premium on pet care, from fresh food to pet therapy.
Pandemic pups growin’ up…The pet-conomy exploded during the pandemic as millions of locked-down Americans took in new companions. Last year there were 5M more pets in the US than in 2019. But as ownership’s gone up, so have prices. Pet-care costs are up 17% from 2020, topping the rate of inflation. Higher prices and resilient demand have made pet care a lucrative biz, with some full-time walkers bringing in six figures.
The dog days aren’t over… While adoptions may’ve slowed, pet spending hasn’t. Last year, US pet sales soared to a record $137B with services like grooming, dog walking, and boarding leading the spend. Pet parents aren’t expected to start skimping anytime soon: sales for the US pet market (the world’s largest) are set to skyrocket 52% to $195B by 2030.