In a major shake-up for the UK’s food delivery industry, US-based DoorDash has agreed to acquire Deliveroo in a £2.9 billion deal. The merger will create a global powerhouse, operating in over 40 countries and serving 50 million customers per month.
Strategic Expansion and Market Impact
The acquisition strengthens DoorDash’s foothold in Europe, positioning it as a direct competitor to Just Eat and Uber Eats in the UK. Deliveroo’s largest markets—Britain and Ireland—will now be part of DoorDash’s network, significantly expanding its reach.
The deal offers Deliveroo shareholders 180p per share, a 44% premium over its recent trading price but well below its 2021 IPO price of 390p. Deliveroo’s co-founder and CEO Will Shu is set to receive £172.4 million for his 6.4% stake.
Concerns Over UK Investment
The takeover is the latest example of a UK-listed company being acquired by a US firm, raising concerns about London’s attractiveness for investment. Other UK firms, including Arm Holdings, Flutter, and Ashtead, have shifted their listings to the US, fueling debate over the future of British tech and commerce.
Competitive Landscape and Future Outlook
Analysts predict the deal will intensify competition, potentially turning the UK market into a two-horse race between DoorDash and Uber Eats. Matt Britzman, senior equity analyst at Hargreaves Lansdown, noted that DoorDash aims to “squeeze out” rivals and gain ground fast.
The acquisition is subject to shareholder approval, with no competing bids currently in sight. If approved, the deal is expected to close later this year, marking a transformative shift in the global food delivery landscape.
Some information for this article is provided by RTÉ.
DoorDash Image from Doordash Developer
