DoorDash announced on Tuesday that it has reached an agreement to acquire Deliveroo, a British food delivery service, in a deal valued at approximately $3.9 billion as part of its strategy to expand internationally.
This acquisition will enhance DoorDash's presence in Europe and the Middle East, reaching millions of users across more than 40 countries, thereby solidifying its position as a leading food delivery app.
The agreement values Deliveroo, headquartered in London, at around 2.9 billion British pounds, equivalent to about $3.9 billion, as reported in a filing with the London Stock Exchange.
Deliveroo operates in nine countries, including France, Italy, Qatar, Singapore, and the United Arab Emirates. The company stated in the filing that the acquisition would allow both companies to invest in product development and technology, thereby strengthening Deliveroo's competitive position in its markets.
Since its launch in 2013, Deliveroo has encountered significant competition and legal challenges regarding its gig-economy business model. Notably, its shares fell by as much as 30 percent shortly after going public in 2021.
In 2022, DoorDash, headquartered in San Francisco, acquired Wolt, a Finnish food delivery service operating in 23 countries predominantly in Europe, for approximately $8.1 billion.
The terms of the Deliveroo acquisition are final, according to DoorDash's filing, pending approval from shareholders and regulatory authorities. The company noted that the deal would not be modified unless a competing bid was presented. The transaction is anticipated to be completed in the fourth quarter of this year.