DoorDash Acquires Deliveroo For US$2.9 Billion
The combined company will have a global presence in more than 40 countries, serving approximately 50 million active monthly users.
US-based commerce platform DoorDash has acquired UK-based rival Deliveroo for US$2.9 billion.
DoorDash and Deliveroo have been in talks since last month, when DoorDash approached Deliveroo for an acquisition, valuing the latter’s shares at 180 pence per share. The announcement of the closure of the deal saw Deliveroo’s shares rise by almost two percent following the news.
The merger will strengthen DoorDash’s position as a leading global platform for local commerce, and it will also enable DoorDash to expand its footprint in Europe as it vies with competition from rivals like Uber Eats and Just Eats. The announcement comes as the European delivery sector consolidates following the COVID-19 pandemic boom.
Deliveroo and DoorDash had generated a total gross order value of approximately $90 billion in 2024, and now, together, they will have a global presence in more than 40 countries, serving approximately 50 million active monthly users.
Commenting on the acquisition in a statement, Tony Xu, co-founder and CEO of DoorDash, said, “Our mission at DoorDash is to grow and empower local economies. We started the company in 2013 to help people like my mom–people running local businesses and creating the vast majority of jobs and economic activity in our communities. Our focus ever since has been on building the best products and services to enable these merchants to grow, connecting them with consumers in their neighborhoods, and creating a local commerce platform that offers uniquely flexible earnings opportunities.”
“I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together," he continued. "We’ll cover more than 40 countries with a combined population of more than one billion people, enabling us to provide more local businesses with the tools and technology they need to thrive. The enlarged group will bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise to invest in innovation and execution at an even higher level. Together, we will work to deliver the best experience for all of our stakeholders, to grow the gross domestic product of cities around the world, and to build the leading global platform for local commerce.”
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Will Shu, co-founder and CEO of Deliveroo, said, “We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organizations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders and local communities. The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition.”
DoorDash is a leading global technology company based in the US with operations in over 30 countries, and over 500,000 local business partners on its marketplaces. DoorDash connects local businesses to communities and consumers, serving upward of 42 million active users each month across the US and Canada. Along with its acquisition of Deliveroo, DoorDash also announced that it would buy the New York City-based hospitality software company SevenRooms for $1.2 billion.
UK-born Deliveroo, a leading local commerce platform with a footprint in nine countries, including the UAE, has partnerships with 176,000 local businesses and serves 7 million active monthly consumers in categories such as restaurants, grocery, and retail. It launched an initial public offering (IPO) on the London Stock Exchange in 2021 at 390 pence per share.
Claudia Arney, Chair of Deliveroo, said, “Deliveroo changed the face of food delivery in the UK and around the world. Thanks to Will and the dedication and innovation of the team, consumers have new food experiences, merchants new opportunities for growth and riders a new type of work. I’m immensely proud to have worked alongside the team and thank them for their hard work.”
She added, “Looking ahead, 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. We are pleased that DoorDash is excited to invest into the business and team and shares our commitments to supporting the interests of riders, merchants, and consumers.”
