DoorDash to acquire Deliveroo in $3.86B deal to expand European presence

U.S.-based food delivery giant DoorDash has agreed to acquire British rival Deliveroo in a deal valued at £2.9 billion (approximately $3.9 billion), signaling a significant strategic move to broaden its reach in the European market. The all-cash offer, confirmed by both companies, will see Deliveroo shareholders receive 180 pence per share—a 44% premium over Deliveroo’s closing price on April 4, 2025, the day before the acquisition approach.

Deliveroo’s Independent Committee has recommended the offer, which has already received backing from shareholders holding approximately 15.4% of the company’s shares, including founder and CEO Will Shu. Notably absent from the list of supportive investors is Amazon, Deliveroo’s largest shareholder with a 14.4% stake. Analysts have flagged Amazon as a potential counter-bidder, although no such move has been announced.

The acquisition will add Deliveroo’s operations in nine countries—including the UK, France, Italy, and Ireland—to DoorDash’s existing portfolio, giving the combined entity a presence in over 40 countries and access to around 50 million monthly active users. The companies reported a combined gross order value of roughly $90 billion in 2024.

DoorDash, which has been actively expanding its international footprint, stated that the deal represents a strategic opportunity to consolidate its presence in Europe, where it has faced stiff competition from Uber Eats and Just Eat Takeaway. The acquisition also enables DoorDash to enter new markets where Deliveroo already has operational infrastructure.

Deliveroo has faced challenges since its 2021 public listing, with its share price dropping more than 50% by early 2025. The company has pulled out of markets such as Australia and Hong Kong due to intense competition. In 2024, Deliveroo reported revenue of about £2 billion and a gross transaction value of £7.1 billion.

The deal marks another major consolidation move in the global food delivery sector, with DoorDash seeking to apply its existing operational model and resources to Deliveroo’s European operations. DoorDash executives indicated that the acquisition would enable more efficient allocation of resources and support future growth in local commerce.

Once the deal is completed, DoorDash plans to continue operating the Deliveroo brand and investing in the UK and other markets. The company emphasized plans to integrate technology and logistics capabilities across its expanded network while maintaining Deliveroo’s local teams and existing merchant relationships.

The acquisition remains subject to regulatory approvals and shareholder agreement. DoorDash has reserved the right to adjust its offer if a third-party bid emerges.