British food delivery firm Deliveroo has stated that it has agreed to a $3.9 billion takeover offer from American rival DoorDash. Deliveroo, which lets customers use an app to buy hot meals and groceries, is set to acquire all issued, and to be issued shares in the company for 180 pence a share.
“The combination with Deliveroo will strengthen DoorDash’s position as a leading global platform in local commerce,” the two firms said.
Will Shu, chief executive and co-founder of Deliveroo, said he was “very proud of everything we have achieved as a standalone business,” but he believed the deal with DoorDash would be “transformative.”
READ: Uber sues DoorDash for anti-competitive practices (February 17, 2025)
“I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together. We’ll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive,” Tony Xu, CEO and co-founder of DoorDash said.
This could mean an end to Deliveroo’s various challenges as a public company. Once a British tech darling, Deliveroo saw its shares tank 30% in 2021 in one of the worst trading debuts on the London Stock Exchange. Shares have continued to fall from that point and are down more than 50% from the firm’s £3.90 IPO price. For DoorDash, acquiring Deliveroo marks a renewed effort from the American online takeout app to expand its presence overseas. DoorDash acquired Finnish food delivery app Wolt for 7 billion euros ($7.9 billion) in 2022.
This takeover is also expected to “rattle” rival companies like Uber Eats. Uber has been a longstanding rival to DoorDash, with it even having sued the company for its “anti-competitive practices.” In the lawsuit, Uber claimed DoorDash, which is the largest provider of restaurant delivery services in the United States, has “devised and is engaged in an unlawful scheme to stifle competition with Uber Eats.”