DoorDash has decided to buy Deliveroo, a food delivery company in the UK. The deal is worth about $3.9 billion (2.9 billion pounds). This will help DoorDash grow in Europe.
Deliveroo’s shareholders will receive 180 pence per share, 44% more than the stock price on April 4, when DoorDash made its first offer.
DoorDash Expands Into More Countries
After the deal, DoorDash will run in 40 countries. It will serve around 50 million users every month. Deliveroo operates in nine European countries, and this deal gives DoorDash access to all of them. The two companies want to grow bigger together.
Deliveroo was founded in 2013 and became public in 2021. At that time, many people were staying home and ordering food online.
But things changed fast. People went back to restaurants, and the food delivery market got crowded. Many new startups joined in, and funding became harder to find.
Deliveroo’s stock has fallen more than 50% since it went public. In 2022, it left Australia, and in 2023, it sold its Hong Kong business. Now, with DoorDash to buy Deliveroo, both companies want a fresh start in a challenging market.
DoorDash to Buy Deliveroo for $3.9 Billion
DoorDash wants to expand its reach by entering more markets. Deliveroo shareholders will get 180 pence per share. That price is 44% higher than Deliveroo’s stock on April 4, when DoorDash first made the offer.
Deliveroo generated £2 billion in revenue last year and handled £7.1 billion worth of orders in 2024. This deal helps DoorDash expand into nine European countries where Deliveroo already operates.
Deliveroo Shares Rise as Deal Moves Forward
After the news broke, Deliveroo’s stock went up nearly 2% on Monday. Last week, the stock jumped to a three-year high after the company confirmed it received the offer.
DoorDash said the deal terms are final. The company will only raise its offer if another buyer offers a better bid. Tony Xu, the CEO of DoorDash, expressed his excitement about the deal.
He said the two companies will reach over 40 countries, with a combined population of more than 1 billion people. Moreover, he added that the goal is to help more local businesses grow by giving them better tools and technology.
The move by DoorDash to buy Deliveroo shows how both companies aim to grow stronger and reach more customers worldwide.