Deliveroo to be acquired by DoorDash for £3.9 billion in major UK food delivery deal
Let's Dish: DoorDash Buys Deliveroo for $3.85B, Expands European Reach
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DoorDash snags UK rival Deliveroo in a $3.85 billion deal, following renewed talks last month.
Deliveroo was approached with a 180 pence per share offer, which they accepted, bumping up Deliveroo's share price by about 2% to 175.6 pence. The original talks had stalled due to disputes over Deliveroo's valuation. DoorDash stated it wouldn't improve its offer unless a rival bid came in.
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The takeover will strengthen DoorDash's grip in the European food delivery market as it goes head-to-head with Uber Eats and Just Eat. Deliveroo's strongest markets are the UK and Ireland, making up 62% of its orders in its latest quarter.
Deliveroo's shares have been lackluster since their 2021 trading debut, despite meal delivery services receiving a boost during the COVID-19 pandemic. The company's shares dipped by as much as 30% shortly after trading began, marking one of the poorest trading debuts on the London Stock Exchange. Since then, they've continued to plummet.
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The takeover will allow DoorDash to expand into 9 new European markets where Deliveroo operates, boosting its global footprint. Post-acquisition, DoorDash will cater to over 50 million monthly active users, a significant increase.
DoorDash and Deliveroo had a combined $90 billion in orders last year.
"After thoughtful deliberation, the Deliveroo Independent Committee has unanimously chosen to endorse this offer, considering it beneficial for all our shareholders and wider stakeholders," said Deliveroo chair Claudia Arney in a statement.
Deliveroo secured support from investors holding about 15.4% of the shares, including founder and CEO Will Shu, Greenoaks, and DST Global. Amazon, Deliveroo's largest investor with a 14.38% stake in the company, was noticeably absent from the list of supporters.
Will Shu, who co-founded Deliveroo in 2013 and heads the company, stands to receive roughly $229.7 million for his 6.4% stake.
This strategic move will bolster DoorDash's standing as a major player in local commerce globally and is expected to close in Q4 2025.
Reuters contributed to this report.
- The economical landscape of food delivery markets worldwide has seen a significant shift with DoorDash's acquisition of Deliveroo for $3.85 billion.
- Deliveroo's teaming up with DoorDash will potentially deliver financial gains to its shareholders, as their agreement has seen Deliveroo's share price increase by about 2%.
- DoorDash's decision to acquire Deliveroo will not only boost its presence in the European food delivery markets but will also expand its services into 9 new markets where Deliveroo currently operates.
- With the successful closing of this acquisition, DoorDash will gear up to cater to over 50 million monthly active users across the globe.