DoorDash wants to buy U.K-based aggregator Deliveroo for roughly $3.6 billion.
Deliveroo’s board confirmed that on April 5, it received a proposal from DoorDash regarding a cash offer for all of Deliveroo’s shares.
After reviewing the proposal with its advisers, the Deliveroo board said that if DoorDash makes a formal offer at that price, it would likely recommend it to Deliveroo’s shareholders—assuming they can agree on the other details.
“Accordingly, the Board of Deliveroo decided to engage in discussions with DoorDash in relation to the Possible Offer and has provided DoorDash with access to due diligence,” Deliveroo said in a statement. “There can be no certainty that any firm offer for Deliveroo will be made. At this time, shareholders are advised to take no action in respect of the Possible Offer.”
DoorDash must make a firm offer by May 23, according to Deliveroo. Reuters reported that JPMorgan is advising DoorDash.
DoorDash 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.
Deliveroo, founded in 2013, is one of the largest third-party aggregators in the U.K., alongside Just Eat Takeaway.com and Uber Eats.
In addition to the U.K. and Ireland, Deliveroo operates in Belgium, France, Italy, Kuwait, Qatar, Singapore, and United Arab Emirates. It exited Hong Kong earlier in April.
Meanwhile, DoorDash is the largest food delivery brand in the U.S., ahead of Uber Eats and Grubhub. But it doesn’t have much of an international presence (only Canada, Australia, Japan, Germany, and New Zealand).
Through Deliveroo, DoorDash hopes to quickly build its global presence. It already does so through Finnish delivery service Wolt, which it bought for $8.1 billion in 2022.
Deliveroo’s gross transaction value (the total amount that customers spend on orders) 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.
It earned $2.35 billion in revenue in 2024, up 2 percent versus 2023.
