DoorDash, the US-based food delivery company, has announced it is acquiring British rival Deliveroo in a deal that will solidify its presence in Europe.
DoorDash had agreed to pay Deliveroo shareholders 180 pence per share, valuing the British company at £2.9 billion ($3.85 billion), the two firms said in a statement.
The Deliveroo board recommended taking the offer, which DoorDash first made in April. The two said bigger reach and local expertise will help take on the competition. Deliveroo shares were up about 2% after the deal was confirmed on Tuesday (May 6th).
DoorDash called its offer final, but said that it reserves the right to increase it if a third party emerges.
The takeover offers a lifeline to Deliveroo, which has been underperforming since its 2021 debut on the London Stock Exchange. The deal is unlikely to face any regulatory issues, as DoorDash is not currently present in any markets served by Deliveroo.
Founded in 2013, Deliveroo works with approximately 176,000 restaurants, grocers, and retail partners in nine countries, including Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, the UAE, and the UK.
Deliveroo, which is headquartered in London, served around seven million monthly active consumers in 2024, according to the firm.
Meanwhile, San Francisco-based DoorDash operates in the US, Canada, Australia, and New Zealand. The Deliveroo deal will significantly expand its European footprint, building on its 2021 acquisition of Finnish rival Wolt in a deal worth about $8 billion.
Wolt operates in the Nordic and Baltic regions, as well as in Germany, Poland, Greece, Japan, and a number of other markets. With the addition of Wolt, DoorDash now serves 42 million monthly active users and has over half a million local partners.
Following the Deliveroo acquisition, it will operate in over 40 countries "with a combined population of more than 1 billion people,” said Tony Xu, the chief executive and co-founder of DoorDash.
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