US giant DoorDash buys UK delivery platform Deliveroo

Unites States (U.S.) delivery giant DoorDash is set to acquire UK delivery platform Deliveroo as part of a £2.9 billion deal. The respective companies reached an agreement on the acquisition on Tuesday, which could see the combined companies reach a global presence in over 40 countries with approximately 50 million monthly active users. Tony Xu, CEO and Co-founder of DoorDash, said:

“Coming together with teams that have similar visions and values accelerates our work to achieve that mission. Deliveroo is just such a team and one that I have long admired. Like DoorDash, Deliveroo is obsessively focused on their customers – consumers, merchants, and riders.”

The Amazon-backed UK delivery brand has partnered with approximately 176,000 local businesses and has added new categories such as grocery and retail, reaching approximately 7 million monthly active consumers. Claudia Arney, Chair of Deliveroo, said:

“Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders.”

Deliveroo operates in nine countries, all of which are new for DoorDash. Bringing together both companies’ existing footprints will enable the Enlarged Group to operate in countries with a combined population exceeding 1 billion people.

DoorDash is offering 180p per Deliveroo share to its stakeholders, despite the company’s initial 390p share price when Deliveroo went public on the London Stock Exchange in April 2021.