United States meal delivery giant DoorDash is set to acquire British rival Deliveroo in a deal valued at approximately £2.9 billion ($3.85 billion), the companies announced on Tuesday.
The acquisition is aimed at strengthening DoorDash’s footprint in Europe amid growing competition in the food delivery sector.
Talks between the two companies were revived last month after DoorDash proposed an offer of 180 pence per Deliveroo share, a bid that was officially confirmed as final on Tuesday. The announcement lifted Deliveroo shares by nearly 2%, though the stock still traded below the offer price at 176.4 pence. Deliveroo’s shares have declined significantly since their 2021 IPO, when they debuted at 390 pence, buoyed by the pandemic-era surge in food delivery demand.
With the acquisition, DoorDash is set to gain access to Deliveroo’s core markets in the UK and Ireland, enhancing its ability to compete with major players like Just Eat and Uber Eats. The two companies reported a combined order volume of around \$90 billion in 2024, with Deliveroo and DoorDash serving 7 million and 42 million monthly active users, respectively.
Deliveroo’s Independent Committee has recommended shareholders accept the offer. “Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders,” said Claudia Arney, Chair of Deliveroo.
DoorDash, headquartered in San Francisco, stated it does not intend to raise its bid unless a competing offer emerges. Deliveroo has secured backing for the deal from shareholders representing approximately 15.4% of shares, including co-founder and CEO Will Shu, and investment firms Greenoaks and DST Global.
However, analysts at Panmure Liberum pointed out that Deliveroo’s largest shareholder, Amazon—holding a 14.38% stake—was notably absent from the list of supporting investors. Amazon has not publicly commented on the offer and is viewed as a potential rival bidder.
The deal is unlikely to face significant regulatory hurdles, as DoorDash currently has minimal presence in Deliveroo’s ten operating markets. The transaction requires approval from at least 75% of Deliveroo’s shareholders to proceed.
If successful, Shu stands to earn about £172.4 million from his 6.4% stake in the company he co-founded in 2013 with Greg Orlowski. Previous discussions between the two companies reportedly stalled due to disagreements over Deliveroo’s valuation.
