DoorDash acquires UK’s Deliveroo in $3.9B deal to expand global food delivery empire

Late last month, U.S.-based meal delivery company DoorDash offered to acquire UK-based Deliveroo for $3.6 billion—a bold move to deepen its footprint in Europe and beyond.

Deliveroo confirmed Tuesday that it has accepted the all-cash offer from DoorDash, which values the company at £2.9 billion ($3.9 billion). The deal prices Deliveroo shares at 180 pence each, a 44% premium over its April 4 closing price. That was the last trading day before DoorDash made its approach official.

The news sent Deliveroo’s stock up nearly 2% on Monday and capped off a recent rally that pushed shares to a three-year high, CNBC reported.

DoorDash said the offer is final—unless a competing bid surfaces.

This deal marks a major chapter for Deliveroo, which has had a turbulent run since going public in 2021. Once touted as one of the UK’s top tech companies, its IPO was marred by a brutal 30% drop on day one. The stock never fully recovered and remains far below its IPO price of £3.90.

Founded in 2013 by Will Shu and Greg Orlowski, Deliveroo operates in over 20 countries, including major markets like Australia, France, Germany, and the United Kingdom. The company generates revenue by charging restaurants a commission and applying a fee per order to customers. The company is active in more than 500 towns and cities across 14 markets.

The company’s debut came at a strange time—food delivery apps had thrived during lockdowns, but investor sentiment began shifting as restrictions eased. Legal scrutiny of the gig economy and growing competition only added to the pressure.

For DoorDash, this is another step in its international push. In 2022, it picked up Finnish delivery app Wolt for €7 billion ($7.9 billion), and the Deliveroo acquisition signals that DoorDash is not slowing down.

Meanwhile, the food delivery industry continues to consolidate. Earlier this year, Deliveroo sold parts of its Hong Kong unit to Delivery Hero. Just Eat is also reportedly in talks to be acquired by Prosus.

DoorDash shares dipped slightly in U.S. pre-market trading following the announcement.

If approved, the merger would create one of the largest food delivery networks globally, with a reach across more than 40 countries.