DoorDash to Acquire Deliveroo in £2.9bn Deal: Strategic Scale or Last Resort?

A major shake-up in food delivery: San Francisco-based DoorDash has agreed to acquire UK-listed Deliveroo for £2.9 billion, paying 180p per share in cash.

Deliveroo’s journey as a public company has been rocky since its 2021 IPO. Shares plunged from an initial 390p to below 180p, amid operational losses and intense competition. Despite finally turning a profit in 2024 — with net income of £2.9 million and adjusted EBITDA of £140 million — its valuation remained weak, making it a ripe target for acquisition.

DoorDash, by contrast, has been aggressively expanding beyond its core US market. The company posted $10.7bn in revenue last year and already completed a €7bn acquisition of Wolt in 2021. The Deliveroo deal adds nine new markets including the UK, UAE, and Qatar — regions where DoorDash previously had no presence. Importantly, there’s little geographic overlap, reducing the risk of regulatory interference.

Why this deal matters

This is another example of the global consolidation trend in the delivery sector. Earlier this year, Prosus struck a €4.1bn deal to take Just Eat Takeaway private. In a sector with high fixed costs, economies of scale are vital. Larger platforms can better optimise logistics, negotiate fees with restaurants and grocers, and leverage customer data for advertising revenue.

Combining operations, Deliveroo and DoorDash will now serve nearly 49 million monthly users and handle around $90bn in annual gross order volume globally.

MY OUTLOOK

From a strategic lens, I believe this acquisition is more of a mutual rescue than a pure growth play.

For Deliveroo, it ends a difficult chapter as a public company, where it struggled to gain investor confidence despite decent operational progress. For DoorDash, it’s a calculated bet: it can absorb Deliveroo’s existing infrastructure and user base at a time when expanding organically in Europe would be costly and slow.

However, execution risk is real. The UK and Middle Eastern markets are crowded. Uber Eats remains a dominant force, and Just Eat has strong European brand equity. Furthermore, Deliveroo’s profitability is still fragile — it only swung to the black last year.

That said, DoorDash’s operating playbook, proven in the US, could bring discipline and product innovation to Deliveroo. If integrated well, this could set a new standard for cross-market efficiency in the sector.

In short, the deal shows how consolidation is no longer optional — it's now survival strategy in a margin-thin industry.