DoorDash to buy Deliveroo in GBP 2.9 bln expansion move

The US-based firm confirmed that it will offer 180 pence per share, following the resumption of talks with Deliveroo last month. 

Reuters reports that Deliveroo’s share price has significantly declined since its 2021 IPO, which was priced at 390 pence per share. The pandemic-era boost to food delivery platforms has since cooled, impacting market valuations across the sector.

A focus on competition and market expansion

 According to company disclosures, DoorDash and Deliveroo collectively processed roughly USD 90 billion in order value during 2024, serving an estimated 49 million monthly active users between them. The proposed merger would give DoorDash access to Deliveroo’s operations across 10 countries, with the UK and Ireland being the most significant additions. DoorDash currently has minimal market overlap with Deliveroo, suggesting limited regulatory resistance to the deal, according to sources cited by Reuters. 

Deliveroo’s independent board committee has recommended the proposal, citing overall shareholder and stakeholder considerations. Company officials confirmed that about 15.4% of shareholders have pledged support, including backing from major investors such as Greenoaks, DST Global, and Deliveroo’s CEO and founder. However, analysts noted the absence of support from Deliveroo’s largest shareholder, Amazon, which holds a 14.38% stake.  

For the transaction to be completed, approval from 75% of Deliveroo’s shareholders is required. DoorDash has indicated it does not intend to increase the offer unless a competing bid emerges. 

In a separate announcement, DoorDash disclosed a USD 1.2 billion agreement to acquire SevenRooms, a hospitality-focused software company based in New York City. This comes in the context of wider financial developments, including a downward revision of its second-quarter earnings guidance. 

According to Reuters, previous discussions between the two delivery firms reportedly stalled over valuation disagreements. The current agreement, if finalised, would mark a significant expansion of DoorDash’s European presence and intensify competition with established regional players such as Just Eat and Uber Eats.