DoorDash is set to acquire UK-based Deliveroo in a deal valued at 180 pence per share, confirmed as the final offer after talks resumed last month. The announcement saw Deliveroo shares rise by about 2%, although they remained slightly below the offer price, reflecting market caution. This acquisition marks a strategic move by DoorDash to expand its European presence, particularly in Deliveroo’s key markets—Britain and Ireland.
Deliveroo, which debuted on the stock market in 2021 at 390 pence per share amid pandemic-fueled demand, has since seen its stock struggle. CEO and co-founder Will Shu, known for personally delivering orders in the company’s early days, defended the deal value, noting the changed macroeconomic climate and competitive landscape. “This is the right place for us,” Shu stated, referencing the need to scale and compete globally.
Analysts, including Russ Mould from AJ Bell, noted that consolidation is inevitable in the overcrowded food delivery sector. The acquisition strengthens DoorDash’s hand against rivals like Uber Eats and Just Eat by significantly increasing its customer base and market access.
The companies reported combined gross order volumes of approximately $90 billion in 2024, with Deliveroo and DoorDash having 7 million and 42 million monthly active users, respectively. DoorDash CEO Tony Xu emphasized the opportunity to scale and introduce new offerings in the European market.
Despite a drop of around 7% in DoorDash shares following a cautious Q2 profit outlook, the company remains optimistic about demand. It expects EBITDA between $600–$650 million, aligned with analyst expectations.
Deliveroo’s board has secured support from shareholders holding 15.4% of the company, including Shu and major investors Greenoaks and DST Global. However, Amazon, Deliveroo’s largest shareholder with a 14.38% stake, has not yet declared its position. Analysts suggest Amazon remains a potential counter-bidder.
The deal is unlikely to face regulatory issues due to DoorDash’s limited current presence in Deliveroo’s markets. Shu, who will earn £172.4 million from his 6.4% stake, has yet to confirm his plans post-acquisition.
