DoorDash to Acquire Deliveroo in $3.9 Billion Deal to Expand European Presence
U.S.-based food delivery company DoorDash is set to acquire British rival Deliveroo in a deal worth £2.9 billion ($3.9 billion), the companies announced on Tuesday, marking a major expansion move for DoorDash in Europe’s competitive food delivery market.
The acquisition, priced at 180 pence per share, aims to strengthen DoorDash’s foothold in Europe, where it faces strong competition from players like Uber Eats and Just Eat. Deliveroo’s strongest market is the UK and Ireland, which accounted for 62% of its total order value in its most recent quarter. The company also has a significant presence in France and Italy.
Shares of Deliveroo rose slightly on the news, climbing 2% to 176 pence, as investors responded to the confirmed offer. DoorDash stated that the 180 pence offer is final but retained the right to raise it if a rival bidder enters the race.
Deliveroo’s board has given the deal its full backing. Chair Claudia Arney said the company’s Independent Committee had “unanimously decided to recommend this offer,” calling it beneficial for shareholders and broader stakeholders.
Despite the board’s support, attention has turned to Amazon, Deliveroo’s largest shareholder with a 14.4% stake, which has not yet indicated whether it supports the deal. Analysts at Panmure Liberum noted the e-commerce giant’s silence, speculating that Amazon could still emerge as a competing bidder.
Deliveroo has already secured support from investors representing 15.4% of shares, including CEO Will Shu, who co-founded the company in 2013. Shu is expected to receive £172.4 million ($229.7 million) for his 6.4% stake.
The acquisition comes as food delivery platforms face pressure to consolidate amid slowing growth and rising competition. Deliveroo’s stock has struggled since its 2021 IPO, when shares debuted at 390 pence but have since declined amid post-pandemic shifts in consumer habits.
Together, Deliveroo and DoorDash reported a combined order value of $90 billion in 2024, positioning the newly merged entity as a formidable force in the global food delivery industry.
The deal remains subject to shareholder approval and regulatory clearance.
