DoorDash buys UK rival Deliveroo for $3.86 Billion
In a bold move to cement its global footprint, U.S. food delivery giant DoorDash announced on Tuesday that it has agreed to acquire U.K.-based rival Deliveroo in a deal valued at £2.9 billion (approximately $3.29 billion). The acquisition marks a significant strategic push for DoorDash into the European market, giving it direct access to nine new countries and millions of users.
DoorDash will pay 180 pence per share to Deliveroo shareholders, representing a 44% premium over Deliveroo’s share price on April 4 — the date when DoorDash first approached the company. Once finalized, the deal will expand DoorDash’s presence to 40 countries and a combined total of 50 million monthly active users.
Founded in 2013, Deliveroo had a promising start, especially during the pandemic-fueled surge in demand for food and grocery delivery. The company went public in 2021, riding a wave of consumer behavior favoring remote work and home delivery. However, the tailwinds soon turned into headwinds.
As the world emerged from COVID-19 restrictions, consumer habits shifted rapidly. Diners returned to restaurants, foot traffic rebounded, and the once-thriving food delivery sector began to cool. The drop in demand, coupled with rising interest rates and a tightening venture capital market, hit companies like Deliveroo hard. Since its IPO, Deliveroo’s share price had fallen by more than 50% as of early April 2025.
The company has recently been streamlining its operations amid fierce competition. In March, it exited Hong Kong, selling the business to Delivery Hero. This followed a similar retreat from Australia in 2022. Still, Deliveroo reported solid financials for 2024, with £2 billion in revenue and a gross transaction value of £7.1 billion.
The acquisition is not just about geographic expansion — it’s also about scale. DoorDash and Deliveroo are betting that their combined operations will allow them to better compete with entrenched rivals like Just Eat Takeaway and Uber Eats across Europe.
For DoorDash, the move reflects a continued ambition to diversify beyond its saturated North American base. With the European market ripe for consolidation, this acquisition could be a pivotal step in the company’s long-term growth strategy.
Will this merger help DoorDash turn the tide in Europe’s competitive delivery landscape? Only time — and consumer loyalty — will tell.
