Doordash has proposed acquiring UK rival Deliveroo for $3.6 billion (£2.7 billion), as announced by Deliveroo on Friday.
In a statement to the Guardian, Deliveroo mentioned that its board is discussing the offer with Doordash, but no formal proposal has yet been made. They noted that if shares are valued at £1.80 ($2.40), it may be a challenge to recommend such an offer to shareholders.
“We cannot confirm that Doordash’s offer to Deliveroo will materialize. At this point, shareholders are advised to refrain from taking any action concerning potential offers,” stated the company.
The proposal from Doordash is valid until May 23rd. Reuters.
Doordash is currently the leading food delivery app in the United States, boasting 42 million active users monthly in 2024 and generating $10.7 billion in revenue that same year. Founded in 2012 in San Francisco, it operates in over 25 countries.
In 2021, Doordash acquired the Finnish delivery service Wolt for 7 billion euros, equivalent to approximately $8.1 billion at the time.
Deliveroo, based in London and founded in 2013, ranks as the second largest food delivery app in the UK. In 2024, it reported an average of 7.1 million active users and earnings of £2.07 billion, as mentioned in a statement.
Both companies have expanded into grocery delivery in recent years and are exploring ways to grow their user base beyond food delivery.
In a February interview with Fortune, Doordash CEO Tony Xu described the company’s presence as feeling like a “spot of dust.”
After the newsletter promotion
“We are actively addressing challenges related to first-party delivery and first-party ordering,” Xu stated. “To establish yourself as a digital powerhouse, you must go beyond these fundamentals.”
Source: www.theguardian.com
