DoorDash announced Tuesday that it will spend $3.9 billion to acquire U.K.-based third-party aggregator Deliveroo.
The company reportedly made a play for Deliveroo last year as well, but the deal fell through after both sides couldn’t agree on valuation, sources told Reuters. Then recently, Deliveroo’s board confirmed that it received a proposal from DoorDash in early April.
Together, the two companies will cover more than 40 countries with a combined population of more than 1 billion, including 50 million monthly active users, according to DoorDash CEO Tony Xu. He added that the combo will bring together DoorDash’s “strong operating playbook with Deliveroo’s local expertise.”
In 2024, the two companies together generated a total gross order value (the total amount that customers spend on orders) of approximately $90 billion.
“Coming together with teams that have similar visions and values accelerates our work to achieve that mission,” Xu said in a statement. “Deliveroo is just such a team and one that I have long admired. Like DoorDash, Deliveroo is obsessively focused on their customers—consumers, merchants, and riders. They work day in and day out to improve their consumer value proposition, bring new services to local businesses, and offer flexibility and support to riders. These efforts and attention to detail from Will and the team have had a tremendous positive impact in the communities where Deliveroo operates.”
DoorDash, the largest third-party delivery service in America, is only in Canada, Australia, Japan, Germany, and New Zealand. It previously purchased Finnish delivery service Wolt for $8.1 billion to boost its international reach. The company plans to do the same with Deliveroo.
Deliveroo, founded in 2013, is one of the largest third-party aggregators in the U.K., alongside Just Eat Takeaway.com and Uber Eats. It partners with 176,000 local businesses across its footprint. Deliveroo operates in the U.K., Ireland, Belgium, France, Italy, Kuwait, Qatar, Singapore, and United Arab Emirates. It exited Hong Kong earlier in April. All of these countries will be new markets for DoorDash.
Deliveroo’s gross transaction value increased 9 percent year-over-year in Q1. The number of orders grew 7 percent and revenue lifted 8 percent to $587.8 million. In the U.K. and Ireland, gross transaction value increased 9 percent and orders rose 7 percent—both faster than the market.
Monthly active consumers rose to 7 million, up 4 percent year-over-year, and average order frequency also ticked up slightly.
The Deliveroo Independent Committee unanimously recommended the offer from DoorDash.
“We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values,” Deliveroo CEO and cofounder Will Shu said in a statement. “Together, we will be even better positioned to serve consumers, merchants, riders and local communities. The Enlarged Group will have the scale to invest in product, technology and the overall consumer value proposition.”
DoorDash also announced plans to buy hospitality tech firm SevenRooms for $1.2 billion. The soon-to-be acquired company helps restaurants, hotels, and other hospitality businesses manage guest relationships, streamline operations, and drive revenue. DoorDash said the purchase will expand its commerce platform and help local businesses increase profitability, build stronger direct customer relationships, and compete more effectively. DoorDash and SevenRooms hope to give operators more control over the customer experience, from online ordering to in-store interactions.
