DoorDash has made an offer to buy UK-based rival Deliveroo for $3.6 billion. While Deliveroo’s board is currently in talks with DoorDash, no firm offer has been made yet. Deliveroo stated that if a firm offer of £1.80 per share is made, they would be inclined to recommend it to shareholders. DoorDash has until May 23 to provide a firm offer.
DoorDash, the largest food delivery app in the US, had 42 million monthly active users in 2024 and $10.7 billion in revenue. The company announced plans to acquire Finnish delivery company Wolt for €7 billion in stock in 2021. Deliveroo, the second largest food delivery app in the UK, had 7.1 million active users in 2024 with £2.07 billion in revenue. Both companies have expanded into grocery deliveries and non-food deliveries to increase their user bases.
In an interview with Fortune, DoorDash CEO Tony Xu stated that the company’s current presence is minimal and more needs to be done to become a digital powerhouse. He emphasized the need to address additional problems beyond first-party delivery and ordering to achieve this goal.
The possible acquisition of Deliveroo by DoorDash could significantly impact the food delivery market in the UK and globally. Shareholders are advised to wait for a firm offer before taking any action.
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