Deliveroo Gets Grabbed by DoorDash: A Global Food Delivery Mega-Merge
Deliveroo strikes £2.9 billion deal for DoorDash acquisition
In a blockbuster move, US giant DoorDash has struck a deal to take over London-based Deliveroo, marking a major expansion for DoorDash into European and international markets. This acquisition follows DoorDash's previous purchase of Wolt Enterprises in 2022, demonstrating its aggressive international growth strategy.
The proposed deal, valued at £2.9 billion, represents a substantial 44% premium over Deliveroo's share price at the time of the acquisition. DoorDash will shell out 180 pence per Deliveroo share, providing a lucrative exit opportunity for Deliveroo shareholders, especially given the current market uncertainties plaguing the food delivery industry [1][2].
While the offer falls short of Deliveroo's initial public offering (IPO) price in 2021, it offers a enticing valuation that DoorDash claims is final and will not be revised.
Global Reach and Market Domination
The merger will create a global force with a presence in over 40 countries, aiming to cater to approximately 50 million monthly active users [1][2]. With this acquisition, DoorDash will extend its geographical footprint and gain entry into nine new markets where Deliveroo is operational, including the UK, France, Italy, and more. This expansion could potentially reshape the competitive landscape of the food delivery sector, pushing back against rivals like Just Eat Takeaway and Uber Eats [2][3].
The CEO's Vision: A Shared Future
Deliveroo's CEO, Will Shu, has expressed optimism about the strategic synergy between DoorDash and Deliveroo. He sees the combined entities as like-minded organizations with a common vision, suggesting that the enlarged group will have the scale to invest in product, technology, and overall consumer value propositions [1]. Deliveroo's chair, Claudia Arney, shares this sentiment, expressing confidence in the merger's ability to propel Deliveroo towards its full potential.
Merciful End for Troubled Shareholders?
The acquisition presents a timely opportunity for Deliveroo shareholders to exit the market, given the industry's challenging conditions. For DoorDash investors, this strategic move could yield long-term benefits, diversifying its market presence and potentially increasing its valuation [1][3].
The deal remains subject to shareholder approval at a future general meeting, with CEO Will Shu, who Controls a 6.4% stake in the company, poised to pocket a substantial £172 million payday upon success.
DoorDash's Second Helping: The SevenRooms Acquisition
In another noteworthy move, DoorDash has also announced the acquisition of US-based hospitality software firm SevenRooms for a whopping $1.2 billion. This acquisition will reportedly give DoorDash's Commerce Platform capabilities a significant boost, allowing merchants to grow in-store sales, strengthen customer relationships, and boost profitability [1].
DoorDash has reported an 18% increase in total orders to 732 million and a 21% surge in revenue to $3.0 billion during its latest financial report [3].
[1] Source: The Guardian (April 4, 2025)
[2] Source: Reuters (April 4, 2025)
[3] Source: Forbes (May 15, 2025)
[4] Source: The Telegraph (April 5, 2025)
- The technology used by Deliveroo is poised to enhance DoorDash's capabilities as part of a strategic move, offering opportunities to further improve product offerings.
- The expected increase in DoorDash's financial resources, secured through acquisitions like Deliveroo and SevenRooms, may contribute to an upward revision in its average market valuation.
- The takeover of Deliveroo by DoorDash presents a significant milestone in the global food delivery business, potentially reshaping footprints in nine new markets and creating a formidable competitor against Just Eat Takeaway and Uber Eats.
- The financing for DoorDash's various business expansions has been primarily sourced through listed shares on financial markets, enabling the company to build its overall international influence and position in the technology sector.
