DoorDash to Acquire Deliveroo in $3.9B Bid to Dominate European Market

DoorDash, a leading food delivery company in the United States, is set to purchase British rival Deliveroo for £2.9 billion ($3.9 billion), both firms announced on Tuesday. The deal marks a significant effort by DoorDash to broaden its influence in Europe and better compete with Just Eat and Uber Eats.

Deliveroo's strongest markets are the UK and Ireland, contributing 62% of its total order value in the most recent quarter. The company also holds a sizable presence in other European countries such as France and Italy, giving DoorDash a foothold in major international markets.

Talks between the companies resumed last month when DoorDash approached Deliveroo with an offer of 180 pence per share. This amount was confirmed as the final bid, resulting in a 2% rise in Deliveroo’s share price, which reached 176 pence after the announcement.

DoorDash has stated it does not plan to raise the offer unless another bidder enters the picture. Deliveroo's shares have struggled since their IPO in 2021, which launched at 390 pence during the pandemic-induced delivery boom.

Deliveroo Chair Claudia Arney confirmed that the board had unanimously voted in favor of the acquisition, saying the offer serves the best interests of all shareholders and stakeholders involved.

The firm also reported it has received backing from shareholders controlling about 15.4% of its stock, including founder and CEO Will Shu, as well as investment firms Greenoaks and DST Global. Shu’s 6.4% ownership is expected to earn him around £172.4 million ($229.7 million).

Notably absent from the supporter list is Amazon, which holds a 14.4% stake in Deliveroo. Analysts from Panmure Liberum suggested Amazon might still step in with a rival bid, but the tech giant has yet to respond to the acquisition news. Combined, the two companies processed about $90 billion in orders in 2024.