DoorDash to acquire Deliveroo in $3.85 billion deal

Move strengthens DoorDash’s European presence amid global expansion

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U.S.-based meal delivery company DoorDash will acquire British rival Deliveroo for 180 pence per share, valuing the deal at approximately £2.9 billion ($3.85 billion). Deliveroo’s Independent Committee has recommended the offer, which DoorDash has labeled as final—though it may increase it if a competing bid emerges.

The acquisition is part of a broader strategy by DoorDash to expand internationally, particularly in Europe, and compete with players like Just Eat and Uber Eats. The deal adds Deliveroo’s strongholds in the UK and Ireland to DoorDash’s portfolio. Combined, the companies processed $90 billion in orders in 2024 with 49 million monthly active users.

In a separate move, DoorDash is also acquiring New York-based software firm SevenRooms for $1.2 billion, aiming to broaden its tech capabilities.

Analysts view the consolidation as a response to tighter consumer spending and increased competition in the food delivery sector. Deliveroo’s CEO, Will Shu, acknowledged the market challenges and supported the decision as a strategic move for long-term success.

The deal requires at least 75% shareholder approval; support has already been secured from investors holding 15.4%, including Shu. However, Amazon, Deliveroo’s largest shareholder with a 14.38% stake, has not commented and is seen as a potential counterbidder.

DoorDash shares fell 7% following the announcement amid a cautious profit forecast for Q2. The deal is not expected to face significant regulatory resistance due to DoorDash’s limited presence in Deliveroo’s markets.

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