Food Delivery Shake-Up: DoorDash to Acquire Deliveroo in $3.9B Deal

DoorDash will acquire Deliveroo for £2.9 billion ($3.9 billion), both companies confirmed on Tuesday, signaling a shake-up in the European food delivery landscape. The move enables DoorDash to take on strong regional players like Just Eat and Uber Eats.

Deliveroo’s strongest base is in the UK and Ireland, responsible for 62% of its recent quarterly orders. Its reach also includes France and Italy, where DoorDash aims to grow post-acquisition.

Last month, DoorDash reinitiated talks with a 180 pence per share proposal, which has now become the final agreed price. Following the announcement, Deliveroo shares saw a 2% rise to 176 pence.

DoorDash said it does not intend to raise the bid, unless a rival offer is made. Deliveroo’s shares have declined sharply since their 2021 debut at 390 pence, suffering in the post-pandemic delivery slowdown.

Deliveroo Chair Claudia Arney stated that the board found the offer to be in shareholders' best interest and unanimously recommended acceptance. The decision followed thorough evaluation.

Investor backing covers around 15.4% of Deliveroo shares, including contributions from CEO Will Shu, as well as investment firms Greenoaks and DST Global. Shu is set to earn over £172 million from his stake.

Market analysts pointed to Amazon's silence as a key development. Amazon, owning a 14.4% share, has not expressed support and could emerge as a rival bidder. Combined, the two companies processed $90 billion in food orders in 2024.