DoorDash to buy UK’s Deliveroo for $3.86B

DoorDash has announced its acquisition of U.K. rival Deliveroo for approximately £2.9 billion ($3.29 billion). This move is part of DoorDash’s strategy to expand into new markets.

Under the terms of the deal, DoorDash will pay Deliveroo shareholders 180 pence per share, representing a 44% premium over Deliveroo’s share price on April 4th when the acquisition offer was made.

The acquisition will give DoorDash access to nine new markets in Europe where Deliveroo primarily operates. The combined scale of the two companies is expected to enhance their competitiveness against rivals like Just Eat Takeaway and Uber Eats.

Once the acquisition is finalized, DoorDash will operate in 40 countries and serve a total of 50 million monthly active users.

Deliveroo, founded in 2013, went public in 2021 amidst a booming food and grocery delivery sector driven by post-pandemic trends. However, as consumer behavior shifted post-COVID and competition intensified, Deliveroo faced challenges and saw a decline in its share value.

Deliveroo reported revenue of £2 billion and a gross transaction value of £7.1 billion for the year ending December 2024. The company recently sold its Hong Kong business to Delivery Hero and exited the Australian market due to intense competition.