LONDON — U.S. delivery giant DoorDash has agreed to acquire British food delivery service Deliveroo in a £2.9 billion ($3.9 billion) deal that significantly expands its international reach, the two companies announced Tuesday.
The acquisition will create a combined food delivery powerhouse with operations in over 40 countries and a customer base of around 50 million monthly active users. DoorDash CEO Tony Xu said the merger will leverage the American firm’s “strong operating playbook” and Deliveroo’s “local expertise” to drive innovation and operational excellence.
“This is a transformative move that aligns with our long-term strategy to grow globally while investing in better service and technology,” Xu said in a statement.
Deliveroo, founded in London in 2013 by American entrepreneur Will Shu, only posted its first annual profit in March after years of losses due to heavy investment in scaling operations. The company’s 2021 IPO on the London Stock Exchange had valued it at £7.6 billion — a high point that sharply contrasts with the current deal, which values shares at £1.80 each, less than half the IPO price of £3.90.
Shares in Deliveroo rose 2% to £1.75 on the FTSE 250 on Tuesday following the announcement, continuing gains sparked by earlier reports of the takeover.
Deliveroo boomed during the COVID-19 pandemic as lockdowns increased demand for home delivery, but heightened post-pandemic competition forced the company to retrench from markets including Hong Kong, Australia, and the Netherlands. The merger marks the end of Deliveroo’s effort to go it alone globally and positions the company for a stronger presence under DoorDash’s umbrella.
The deal is expected to close in the final quarter of 2025, pending regulatory and shareholder approvals.
DoorDash, the dominant delivery platform in the U.S., first entered the European market in 2021 with its $8.1 billion acquisition of Finnish delivery firm Wolt. The Deliveroo purchase further bolsters its footprint across key markets such as the U.K., France, Ireland, Italy, the UAE, and Singapore.
“This marks the beginning of a transformative new chapter,” said Deliveroo CEO Will Shu, who is expected to remain in a leadership role after the merger.
DoorDash said it has no plans to relocate Deliveroo’s London headquarters and emphasized it does not foresee changes to the contracts of the company’s self-employed delivery riders.
Both companies have faced increasing scrutiny over labor practices. In the U.K., the Supreme Court ruled last year that Deliveroo riders do not qualify for collective bargaining rights, reaffirming their classification as independent contractors. The company exited Spain after new legislation granted riders full employment rights — a move DoorDash is watching closely amid similar legal pressures globally.
In the U.S., DoorDash agreed in February to a $17 million settlement with New York State over allegations it withheld tip money from its drivers.
The Deliveroo deal is the latest in a wave of consolidation in the food delivery sector, following Prosus’ announcement earlier this year of a €4.1 billion takeover bid for Just Eat Takeaway.com.
The merger signals an intensifying battle for dominance in a global delivery market reshaped by shifting consumer habits, labor reforms, and investor pressure for profitability.
