King of Delivery: DoorDash to take over Deliveroo for $3.9 billion
The merger between the two, which have "complementary geographic activities," will "strengthen the position" of DoorDash "as a global platform," the joint statement noted.
DoorDash application on a cell phone
Food delivery platform DoorDash agreed with its UK competitor Deliveroo to acquire it for 2.9 billion pounds ($3.9 billion), the two companies announced Tuesday in a joint statement.
The merger between the two, which have "complementary geographic activities," will "strengthen the position" of DoorDash "as a global platform," the joint statement noted.
The company resulting from the merger will have presence in more than 40 countries, and will have around 50 million active monthly users.
DoorDash, an industry leader
In turn, Deliveroo, also founded in 2013, is present in nine countries - France, Italy, Belgium, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom.
DoorDash said it will pay £1.80 per share to shareholders of Deliveroo, which in recent years exited several markets, including Hong Kong, Australia and the Netherlands, due to strong competition.
The group reported in March for the first time an annual profit of 2.9 million pounds, with a turnover of 2.1 billion pounds (USD 2.8 billion, at current exchange rates).
Until then it had been making substantial losses, due to high investment costs.
The merger is due to be completed in the last quarter of 2025, and is pending approval from regulators and Deliveroo shareholders.
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