By Asmita - May 06, 2025
DoorDash to acquire Deliveroo for $3.9 billion, valued at 180 pence per share in a move to expand internationally, particularly in Europe and the Middle East. The acquisition, at a premium of 44% on Deliveroo's closing price, will create a powerhouse serving 50 million users in 40 countries, aiming to enhance consumer offerings through increased scale and product development.
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Albert Bridge via Wikimedia
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DoorDash has reached an agreement to acquire British food delivery firm Deliveroo for approximately $3.9 billion, marking a significant move in its international expansion strategy. The deal, announced as Deliveroo prepares to exit the London Stock Exchange, values the company at 180 pence per share-a 44% premium on its closing price the day before the acquisition was revealed and a 40% premium on its average price over the prior three months. However, this offer remains well below Deliveroo’s IPO price of 390p from April 2021, reflecting the challenges the company has faced since its public debut, including a nearly 50% drop in share value as pandemic-driven demand for food delivery waned.
The acquisition is expected to face minimal regulatory hurdles, as DoorDash currently has little to no presence in Deliveroo’s ten markets, which include the UK, France, Belgium, Ireland, Italy, Singapore, the UAE, Kuwait, and Qatar. This move will allow DoorDash to rapidly expand its footprint across Europe and the Middle East, building on its previous international push following its 2021 acquisition of Finnish delivery service Wolt. Together, DoorDash and Deliveroo will serve about 50 million monthly active users in over 40 countries, generating a combined gross order value of approximately $90 billion in 2024.
Deliveroo’s board has indicated strong support for the deal, with CEO Will Shu emphasizing the strategic alignment and complementary nature of the two companies. The enlarged group aims to leverage its increased scale to invest in product development, technology, and enhanced consumer offerings. Deliveroo’s chair, Claudia Arney, echoed this sentiment, expressing confidence that joining forces with DoorDash will accelerate the realization of Deliveroo’s full potential.
The transaction is still subject to shareholder approval at an upcoming general meeting, with Deliveroo’s major stakeholders, including CEO Will Shu, standing to benefit significantly if the deal proceeds. The acquisition underscores ongoing consolidation in the food delivery sector, as global players seek scale and diversification to navigate shifting consumer habits and competitive pressures.
