DoorDash announced on Tuesday that it will acquire U.K. food delivery rival Deliveroo in a deal valued around £2.9 billion (approximately $3.86 billion), marking a significant move to expand its presence in European markets.
Under the agreement, Deliveroo shareholders will receive 180 pence per share, a premium of about 44% on Deliveroo’s share price as of April 4, when DoorDash first approached with its acquisition offer. The acquisition would significantly strengthen DoorDash’s European footprint, immediately giving it entry into nine additional markets where Deliveroo currently operates.
With the takeover completed, DoorDash expects to establish operations in a total of 40 countries, serving around 50 million monthly active users worldwide. Executives from both companies anticipate their increased scale will position them better to rival other major players such as Uber Eats and Just Eat Takeaway.
Founded in 2013, Deliveroo went public in 2021 amid booming demand for food delivery driven largely by pandemic-era conditions, when consumer orders for dining out surged dramatically and start-ups in the grocery and restaurant delivery space attracted substantial investment.
However, as public health concerns receded, consumer habits shifted back toward in-person dining experiences and traditional shopping. The crowded food delivery sector soon became a challenging landscape for many operators, exacerbated by tightening financial conditions starting in 2022 when rising interest rates prompted venture capital firms to favor more profitable ventures.
Since its initial public offering, Deliveroo’s share price had fallen by more than half prior to DoorDash’s approach. The company previously withdrew from Australian markets in 2022 and recently exited its Hong Kong operations after selling them to Delivery Hero amid competitive pressures.
For the fiscal year ended December 2024, Deliveroo reported approximately £2 billion in revenue, with its annual gross transaction value reaching around £7.1 billion.
