Search Here

DoorDash, a major US food delivery company, has announced it will buy British food delivery app Deliveroo for $3.9 billion.

The move is part of DoorDash's plan to grow its presence in Europe and compete more strongly with rivals like Just Eat and Uber Eats.

Deliveroo is most popular in the UK and Ireland, where most of its orders come from. It also operates in France, Italy, Belgium, and several countries in the Middle East and Asia. With this deal, DoorDash will expand its reach to over 40 markets around the world.

According to AP News, DoorDash is offering 180 pence per share for Deliveroo. That's 29% higher than the stock's price before the offer was made public.

The two companies confirmed the deal in a joint statement before trading opened on the London Stock Exchange on Tuesday.

The deal has been approved by Deliveroo's Independent Committee, which said in a statement, "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."

Amazon Silent on DoorDash's $3.9 Billion Deliveroo Offer

Some major investors are already backing the deal, including Deliveroo's founder and CEO Will Shu, along with Greenoaks and DST Global. These groups together hold around 15.4% of the company's shares.

However, Amazon, which owns about 14.4% of Deliveroo, has not yet shared its position on the offer. Analysts have noted Amazon's silence and believe it could still make a counteroffer.

Will Shu, who helped start Deliveroo in 2013, will receive over $229 million from the deal for his 6.4% stake in the company, CNN said.

This isn't DoorDash's first global move. In 2022, it bought Finnish company Wolt Enterprises. DoorDash is continuing to grow its business internationally, building on its dominance in the US food delivery market.

DoorDash CEO Tony Xu said, "I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together."

In 2024, DoorDash and Deliveroo together processed approximately $90 billion in orders. The deal also follows a recent $4.29 billion acquisition of Just Eat Takeaway.com by investment group Prosus, highlighting how fast the food delivery market is changing in Europe.