DoorDash makes US$3.6B bid to acquire Deliveroo, expanding its global reach

GLOBAL – U.S.-based food delivery company DoorDash has made a preliminary all-cash offer to acquire British rival Deliveroo for approximately US$3.6 billion (£2.7 billion), valuing Deliveroo shares at 180pence each.

The proposed acquisition of Deliveroo by DoorDash offers a 23% premium over Deliveroo’s share price before the announcement, triggering a significant rise in Deliveroo’s stock value.

Deliveroo’s board has expressed its intention to recommend the offer to shareholders, contingent upon agreeing on final terms. DoorDash has until May 23 to submit a formal bid.

This acquisition forms part of DoorDash’s strategy to extend its international footprint, following its successful acquisition of Finnish delivery service Wolt for €7 billion (US$8 billion).

By acquiring Deliveroo, DoorDash would gain access to established markets such as the UK, France, and Italy, enhancing its global presence and expanding its international business operations.

Deliveroo, founded in 2013, operates across ten countries and reported its first annual pre-tax profit of £12.2 million (US$13.9 million) in 2024.

Due to the minimal overlap in market presence between the two companies, the acquisition is expected to face few regulatory obstacles.

If DoorDash proceeds with the deal, it would enable the company to expand into key European markets like the U.K., Ireland, France, and Italy without having to compete directly with dominant local players.

About 60% of Deliveroo’s business is concentrated in the U.K. and Ireland, with the rest spread across continental Europe, the Middle East, and Singapore.

This acquisition would provide DoorDash with an opportunity to tap into these well-established markets and further solidify its global reach.

Deliveroo’s 2024 revenue is reported to be approximately US$2.8 billion. The acquisition, if finalized, would be one of the year’s first major purchases by a restaurant-related company.

With the potential to apply the strategies that secured its dominance in the U.S. delivery market, DoorDash is poised to replicate this success across new geographical territories.

In addition, DoorDash’s earlier purchase of Wolt, which expanded its operations into diverse markets like Germany, Japan, and others, demonstrates its focus on growing its international presence.

However, international acquisitions in the delivery space have shown mixed results, with examples like Just Eat Takeaway’s acquisition of Grubhub, which ultimately led to the sale of Grubhub for a fraction of its initial purchase price in 2024.

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