In a bold move to cement its global dominance, US-based food delivery giant DoorDash has tabled a massive $3.6 billion offer to acquire British rival Deliveroo, marking one of the biggest cross – Atlantic deals in the meal delivery sector. DoorDash’s bid values Deliveroo at 180 pence per share, a price that Deliveroo’s board is reportedly inclined to recommend to shareholders, pending agreement on other terms.
This offer signals DoorDash’s aggressive push to expand its footprint into Europe, a market where it currently has limited presence. Deliveroo’s portfolio offers DoorDash access to 10 new markets, creating a complementary and strategic expansion that could reshape the competitive landscape. The deal is expected to sail through regulatory scrutiny, unlike other potential mergers that face antitrust hurdles.
Deliveroo’s journey has been turbulent since its 2021 IPO, with shares plummeting nearly 50% amid a post-pandemic slowdown in online food delivery demand and investor appetite shifting toward profitability. The company’s recent exit from loss-making Hong Kong operations – selling assets to Delivery Hero’s foodpanda – reflects ongoing efforts to streamline and focus on core markets. DoorDash’s interest in Deliveroo is not new; talks surfaced last year but faltered due to valuation disagreements. This renewed and firm offer underscores DoorDash’s confidence in Deliveroo’s long-term value and the strategic necessity of European expansion to compete with other global players.As DoorDash races to finalize the deal by the May 23 deadline, the food delivery wars are heating up. The question is: will this acquisition turbocharge DoorDash’s global ambitions and leave competitors scrambling, or will Deliveroo’s legacy be swallowed whole in the quest for market supremacy?