In a significant move within the food delivery industry, U.S.-based DoorDash has acquired British rival Deliveroo for £2.9 billion ($3.9 billion). The all-cash deal, priced at £1.80 per share, represents a 77% premium over Deliveroo’s recent trading price but is less than half of its 2021 IPO valuation of £7.6 billion .
Deliveroo’s board unanimously approved the acquisition, which will see the company delist from the London Stock Exchange. CEO and co-founder Will Shu, holding a 6.4% stake, is set to receive approximately £172 million from the transaction .
This acquisition significantly expands DoorDash’s presence in Europe, adding key markets such as the UK, Ireland, France, Belgium, and Italy to its portfolio. Combined, the two companies will operate in over 40 countries, serving a population exceeding one billion people .
DoorDash CEO Tony Xu expressed enthusiasm about the merger, stating, “Deliveroo is just such a team and one that I have long admired. Together, we’ll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive” .
Deliveroo, founded in London in 2013, had previously expanded rapidly but faced challenges post-IPO, including market exits and investor concerns. Despite posting its first annual pre-tax profit of £12 million in 2024, the company struggled to meet long-term expectations .
The acquisition is expected to be completed between October and December 2025, pending shareholder and regulatory approvals. Post-merger, Deliveroo will maintain its London headquarters and existing agreements with the GMB union.However, up to 830 jobs, primarily in back-office roles, may be affected, though both companies have pledged to minimize redundancies .
This strategic acquisition underscores DoorDash’s commitment to expanding its global footprint and competing more effectively in the international food delivery market.
