DoorDash Acquires Deliveroo in $3.9 Billion Deal to Strengthen European Foothold

In a major move within the global food delivery sector, U.S.-based DoorDash has agreed to acquire British competitor Deliveroo for £2.9 billion ($3.9 billion). The strategic acquisition, confirmed by both firms on Tuesday, aims to bolster DoorDash’s presence across Europe and challenge dominant players like Just Eat and Uber Eats.

Deliveroo’s primary markets are the UK and Ireland, which collectively contribute 62% of its total order value as of the last financial quarter. Additional European markets such as France and Italy also play a key role in Deliveroo’s business, providing DoorDash a broader continental reach post-acquisition.

Negotiations resumed last month when DoorDash offered 180 pence per share, an offer Deliveroo accepted. The finalization of this deal led to a modest increase in Deliveroo’s stock price, which climbed roughly 2% to 176 pence on Tuesday. DoorDash emphasized that it has no plans to raise its bid but could reconsider if another bidder steps forward.

Since Deliveroo’s 2021 public listing, its stock has seen a steep decline from its debut price of 390 pence. The company struggled to maintain momentum post-pandemic, which had initially driven a surge in demand for delivery services.

Claudia Arney, Chair of Deliveroo, noted that after careful evaluation, the company’s Independent Committee unanimously decided the offer was favorable for both shareholders and broader stakeholders. She expressed confidence in the strategic alignment between the two businesses.

Deliveroo also stated it had received commitments backing the deal from shareholders holding approximately 15.4% of its stock. Supporters include CEO Will Shu, and major investment firms like Greenoaks and DST Global. Shu, who co-founded Deliveroo in 2013, stands to earn around £172.4 million ($229.7 million) from his 6.4% stake.

Despite the support, analysts at Panmure Liberum pointed out that Amazon—Deliveroo’s largest investor with a 14.4% stake—was noticeably absent from the list of endorsing shareholders. Speculation remains that Amazon could emerge with a counteroffer. Neither Deliveroo nor Amazon has commented further. Combined, Deliveroo and DoorDash recorded $90 billion in orders in 2024.