DoorDash, the leading U.S. food delivery service, has announced a definitive agreement to acquire British competitor Deliveroo for £2.9 billion ($3.9 billion) in cash. This acquisition, representing a 29% premium over Deliveroo’s share price prior to the offer, is set to significantly expand DoorDash's presence across Europe, Asia, and the Middle East. The deal is expected to close between October and December 2025, pending shareholder and regulatory approvals.

Founded in 2013 by Tony Xu, Andy Fang, and Stanley Tang, DoorDash has grown to become the largest food delivery platform in the United States, holding a 56% market share. The company operates in multiple countries, including Canada, Australia, and New Zealand. In 2022, DoorDash expanded its international footprint by acquiring Wolt Enterprises, a Helsinki-based delivery company, for $8.1 billion. This acquisition added 22 new markets to DoorDash's portfolio, including Germany, Denmark, and Sweden.

Deliveroo, founded in 2013 by Will Shu and Greg Orlowski, is a British online food delivery company operating in nine countries. The UK and Ireland account for 59% of its business as of 2023. The company went public on the London Stock Exchange in March 2021, but its IPO was considered one of the worst in the exchange's history, with shares dropping significantly on the first day of trading. Despite this rocky start, Deliveroo became a constituent of the FTSE 250 Index in December 2024.

The acquisition requires approval from Deliveroo shareholders, with at least 75% approval needed. Notably, Amazon, Deliveroo's largest shareholder, has not publicly commented on the deal, leading to speculation about a potential counterbid. The deal is not expected to face significant regulatory hurdles, as DoorDash currently lacks a presence in Deliveroo's existing markets.

This acquisition marks DoorDash's second major international expansion, following its 2022 purchase of Wolt Enterprises. By acquiring Deliveroo, DoorDash will operate in over 40 markets globally, significantly enhancing its scale and competitiveness in the food delivery industry. The move reflects ongoing consolidation in the sector, as companies seek to expand their reach and improve profitability.

In the first quarter of 2025, DoorDash reported record revenue of $3.03 billion, a 21% year-over-year increase. Total orders rose 18% to 732 million, with notable growth in grocery deliveries. The company's subscription services, DashPass and Wolt+, reached 22 million subscribers. Despite reporting a net income of $193 million, DoorDash shares dropped nearly 9% following the acquisition announcement, amid investor concerns about profitability during the integration of Deliveroo.

The food delivery industry is experiencing significant consolidation. For example, investment firm Prosus recently acquired Just Eat Takeaway.com for €4.1 billion. Additionally, Uber announced plans to acquire an 85% stake in Turkey's Trendyol Go for $700 million. These moves underscore the competitive nature of the market and the strategic importance of scale and geographic reach.

DoorDash's acquisition of Deliveroo represents a pivotal moment in the food delivery industry, highlighting the strategic importance of scale and international reach. As the sector continues to consolidate, the implications for competition, regulation, and consumer choice will be closely watched.