Deliveroo, the UK-based food delivery giant, is set to be acquired by its US rival, DoorDash, in a deal valued at approximately £2.9 billion.
The acquisition, which will see DoorDash pay 180p per share in cash for the London-listed company, will create a global powerhouse in the food delivery sector.
The combined entity will operate in 40 countries and process an estimated £67.7 billion (US$90 billion) worth of orders annually.
Both companies expressed optimism about the merger, stating that the combination "will strengthen DoorDash’s position as a leading global platform in local commerce, enabling the combined entity to better serve businesses, consumers and couriers”.
Founded in 2013 by CEO Will Shu, Deliveroo currently operates in nine countries and collaborates with over 130,000 riders worldwide.
It made sales of around £2 billion in 2024.
Mr Shu said: “We are now at the beginning of a transformative new chapter.
“DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values.
“Together, we will be even better positioned to serve consumers, merchants, riders and local communities.
“The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition.”
DoorDash was also set up in 2013, co-founded by chief executive Tony Xu, who has led the company ever since.
It operates in more than 30 countries and delivers more than 2.5 billion orders a year, helping it notch up revenues of US$10.7 billion (£8 billion) in 2024.
Mr Xu said: “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 one billion people, enabling us to provide more local businesses with the tools and technology they need to thrive.”
The deal is expected to complete in the final three months of 2025 but will need to be approved by Deliveroo’s shareholders.
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