DoorDash Bets Big on Europe with Deliveroo Takeover

U.S. food delivery powerhouse DoorDash announced on Tuesday that it will acquire UK-based Deliveroo for £2.9 billion ($3.9 billion), a move aimed at growing its European operations and rivalling giants like Just Eat and Uber Eats.

Deliveroo’s dominance in Britain and Ireland—where it draws 62% of its order volume—makes the acquisition a strategic win for DoorDash. Deliveroo also operates in France and Italy, widening DoorDash’s market reach.

Negotiations were revived last month when DoorDash offered 180 pence per share for Deliveroo. The proposal was confirmed as final, leading to a slight 2% rise in Deliveroo's stock to 176 pence.

DoorDash clarified that it won’t sweeten the deal unless a competing offer arises. Deliveroo’s stock has been under pressure since its 2021 IPO, which had an initial share price of 390 pence.

Deliveroo Chair Claudia Arney said the board concluded that the offer serves all stakeholders well, including long-term investors. The board’s decision to accept was unanimous.

Support for the deal has come from investors holding 15.4% of Deliveroo's stock, including co-founder Will Shu, Greenoaks, and DST Global. Shu’s stake of 6.4% will bring him a windfall of approximately £172.4 million ($229.7 million).

Yet Amazon, which owns a 14.4% stake, has not declared support. Analysts suggest Amazon might still present a counteroffer. In 2024, both DoorDash and Deliveroo processed a combined $90 billion in food orders.