DoorDash to acquire Deliveroo for $3.9B
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Dive Brief:
DoorDash has agreed to acquire Deliveroo for 180 pence in cash per share, equating to roughly £2.9 billion or about $3.9 billion with today's exchange rates, the company said in a Tuesday press release. The companies previously disclosed a similar tentative deal in late April.
The transaction has been approved by both boards and is expected to close during the fourth quarter, according to an earnings release. The companies will continue to act independently until the deal closes.
DoorDash will now have access to the nine countries Deliveroo operates in — including the United Kingdom, where Deliveroo controls nearly one-third of the market share. In total, Doordash will now extend into over 40 countries serving 50 million monthly active users.
Dive Insight:
This deal will make DoorDash an international delivery powerhouse. Last year, DoorDash and Deliveroo had a combined gross order value of about $90 billion. Comparatively, Uber had about $75 billion in gross bookings in 2024.
This acquisition is the largest purchase DoorDash has made since its $8 billion buyout of Wolt in 2021, which extended it into Europe. The Wolt buy gave DoorDash access to the Nordic region as well as Central and Eastern Europe. Deliveroo will bring it into Belgium, France, Italy and Ireland as well as four countries in the Middle East.
DoorDash and Deliveroo have complementary strengths, as well. Deliveroo has seen success in cities and large urban centers, where DoorDash has done well in a mix of urban suburban and rural areas, according to the press release.
'This offer will enable Deliveroo to build on its significant strategic and operational progress, to strengthen its competitive advantage, to invest further in innovation and further enhance our proposition to stakeholders,' Claudia Arney, Deliveroo chair, said in a statement.
Deliveroo, which works with about 176,000 local businesses, has also expanded into grocery and retail over the years, similar to DoorDash's extension beyond restaurants. The combined companies will service a total population of over 1 billion people.
'DoorDash and Deliveroo are aligned in their dedication to serving merchants across multiple categories in local commerce, enabling local businesses to connect with consumers in their communities, solving mission-critical challenges such as consumer acquisition and demand generation and an exceptional logistics experience,' the companies said in the press release.
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