To expand its global reach, DoorDash, the leading U.S.-based food delivery service, has offered to purchase its U.K. rival Deliveroo for a staggering $3.6 billion (£2.7 billion). The deal, which is still in negotiations, could reshape the food delivery landscape in Europe if it goes through. Let’s dive into what’s happening and why it matters for companies, their customers, and the food delivery industry.
What’s Happening & Why This Matters
On Friday, Deliveroo confirmed it is in talks with DoorDash regarding the acquisition offer. While no formal offer has been made yet, Deliveroo indicated that if DoorDash offered £1.80 per share (about $2.40), the company would likely recommend the proposal to its shareholders. The deadline for DoorDash to make a formal offer is May 23, 2025.
For DoorDash, this acquisition represents a major push into the European market, where Deliveroo is the second-largest food delivery app. DoorDash dominates the U.S. market, with 42 million monthly active users and $10.7 billion in revenue as of 2024. Its expansion strategy has included acquisitions like Wolt, a Finnish delivery company, which DoorDash bought for €7 billion (roughly $8.1 billion) in 2021.
In contrast, Deliveroo, founded in 2013 and based in London, has also sought to broaden its offerings. The company averages 7.1 million active users and £2.07 billion in revenue in 2024. Deliveroo has been moving beyond food delivery, venturing into grocery and non-food deliveries.
This potential acquisition is part of DoorDash’s broader plan to become more than just a food delivery service. CEO Tony Xu has previously expressed his ambition to expand DoorDash’s presence beyond food delivery, with the company seeking to address more comprehensive digital and delivery challenges. Xu has been vocal about the need to grow DoorDash’s offerings to compete with larger digital platforms, saying that the company must diversify its services to become a digital powerhouse.
For Deliveroo, the offer presents an opportunity to join forces with a well-established player in the global delivery market. However, as the discussions progress, there is no certainty that the deal will go through. The company has urged its shareholders to take no action, as the situation remains fluid.
The offer also comes when both companies are making strides in expanding their services. For instance, DoorDash is actively pursuing grocery delivery and has begun offering non-food deliveries in several markets. This trend reflects the growing demand for delivery services that extend beyond food, a trend both companies are eager to capitalize on.
TF Summary: What’s Next
As the deadline for DoorDash’s formal offer approaches, all eyes are on how the negotiations will unfold. If the deal is finalized, it would mark a significant step in DoorDash’s global expansion, especially within Europe. For Deliveroo, the offer presents both an opportunity and a challenge—whether to accept it and join forces with a U.S. giant or continue to carve out its own path in a competitive market.
In the coming months, we’ll see more clarity on whether the acquisition is finalized. Additional time will tell the impact on European delivery ecosystems. Whether this deal closes or not, both companies are pursuing innovation and diversification in the delivery space to gain a larger market share.
— Text-to-Speech (TTS) provided by gspeech