U.S.-based meal delivery company DoorDash has agreed to acquire British competitor Deliveroo for £2.9 billion ($3.85 billion), as both firms aim to expand their market presence and tackle rising competition. The companies resumed discussions last month after DoorDash submitted a proposal of 180 pence per share, which they confirmed on Tuesday as the final offer.
Earlier talks had broken down due to disagreements over Deliveroo’s valuation. DoorDash stated it does not plan to raise the offer but retained the right to revise it if a competing bid emerges.
The acquisition will strengthen DoorDash’s market share in Europe, positioning it to better compete with Just Eat and Uber Eats. Deliveroo’s core market—Britain and Ireland—accounted for 62% of its order value in the most recent quarter. Combined, Deliveroo and DoorDash recorded order volumes worth around $90 billion in 2024.
Deliveroo’s major markets also include France and Italy. However, the deal is unlikely to encounter regulatory challenges since DoorDash currently has little to no presence in any of Deliveroo’s 10 operating markets. Deliveroo’s stock has faced difficulties since its 2021 market debut, which came during a pandemic-driven surge in demand for meal delivery services.
“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,” its Chair Claudia Arney said in a statement.
The acquisition of Deliveroo by DoorDash marks a significant move in the global food delivery industry, allowing DoorDash to strengthen its foothold in Europe without triggering major regulatory concerns. With a combined order volume of $90 billion in 2024 and minimal market overlap, the merger sets the stage for intensified competition with players like Just Eat and Uber Eats across key European regions.
