DoorDash mentioned on Tuesday it has agreed to purchase its U.Ok. rival Deliveroo for about £2.9 billion (round $3.29 billion), because the U.S. meals supply firm seeks to broaden into new markets.
DoorDash can pay Deliveroo shareholders 180 pence per share, which represents a premium of 44% over the latter’s share value on 4 April, when the U.S. agency approached with its acquisition provide, the businesses mentioned.
The deal would give DoorDash entry to 9 new markets in Europe, the place Deliveroo operates in primarily. The businesses are betting their mixed scale would additionally assist them compete higher with rivals equivalent to Simply Eat Takeaway and Uber Eats.
DoorDash mentioned it might function in 40 nations and serve a complete of fifty million month-to-month lively customers as soon as the acquisition closes.
Based in 2013, Deliveroo went public in 2021, when the grocery and meals supply sector was driving excessive on post-pandemic tailwinds — folks have been nonetheless attempting to remain residence, work remotely, and so have been ordering takeout greater than they’d have in any other case. Meals and grocery supply startups have been being based in droves and attracting piles of enterprise capital.
However as COVID fears pale and other people returned to buying in-person and going out to eating places and cafes, meals and grocery supply startups out of the blue discovered themselves struggling to regulate to quickly altering client conduct in a out of the blue crowded house. It didn’t assist that capital began rising scarce in 2022 as rates of interest rose and enterprise buyers held on to their checks as they sought extra worthwhile investments.
Since its itemizing, Deliveroo’s shares had declined greater than 50% till April 4. This March, the corporate bought its Hong Kong enterprise to Supply Hero, citing intense competitors. It had additionally exited Australia in 2022, the place it confronted related competitors pressures.
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Deliveroo reported income of about £2 billion and gross transaction worth of £7.1 billion within the 12 months ended December 2024.
