American food delivery giant DoorDash has announced plans to acquire London-listed rival Deliveroo in a major industry consolidation worth approximately €3.4 billion, creating a global powerhouse in the food delivery sector.
The all-cash transaction, which values Deliveroo shares at 180p each, will forge a combined entity with operations across 40 countries and an annual order volume of around €80 billion. The deal represents a 44 percent premium over Deliveroo’s closing share price on April 4th, just before DoorDash’s initial approach.
Deliveroo co-founder and CEO Will Shu, who established the company in 2013, stands to receive approximately €200 million from his 6.5 percent stake. Deliveroo staff, who collectively hold about 36 million shares, are expected to share a €76 million payout when the deal concludes.
“We are now at the beginning of a transformative new chapter,” said Shu. “DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders and local communities.”
The merger brings together two companies founded in the same year but operating in different geographic markets. While Deliveroo currently operates in nine countries with over 130,000 riders and generated sales of approximately €2.3 billion in 2024, DoorDash has a wider footprint spanning more than 30 countries, delivering over 2.5 billion orders annually with revenues reaching $10.7 billion last year.
DoorDash CEO Tony Xu expressed enthusiasm about the acquisition: “I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together. We’ll cover more than 40 countries with a combined population of more than one billion people.”
The transaction, expected to complete in the final quarter of 2025 pending shareholder approval, comes after a challenging period for Deliveroo since its London IPO four years ago. The company’s initial public offering valued it at £7.6 billion (€8.9 billion), but shares immediately dropped after listing.
While DoorDash plans a six to twelve-month review of the merged operations, it anticipates only modest workforce reductions of 1-3 percent, primarily affecting administrative and support roles. The company has committed to maintaining Deliveroo’s London headquarters and honoring the existing agreement between Deliveroo riders and the GMB trade union.