DoorDash is reportedly in talks to acquire Deliveroo, a UK-based food and grocery delivery app. The agreement is valued at approximately £2.9 billion, or just over $3.29 billion. DoorDash is taking a huge leap with this acquisition. It hopes to grow internationally and bolster its position in the cutthroat food delivery market. Deliveroo’s purchase comes just days after the London-based firm announced soaring revenue and gross transaction value. That’s no small feat, considering that they are still being challenged by industry competitors.
Founded in 2013, Deliveroo quickly gained traction in the food delivery market, capitalizing on the growing demand for takeout services, particularly during the COVID-19 pandemic. The dramatic increase in online food delivery during covid led Deliveroo to take the brave step of floating on the stock market in 2021. Favorable market conditions and a booming consumer reliance on delivery services backed up that decision.
Deliveroo’s success so far in 2024, the sign of a pandemic rebound to be sure. The firm estimated a revenue of approximately £2 billion for the year-ending December 2024. They boasted on their website a GTV of £7.1 billion. These figures are a testament to the company’s strong operational strengths and its impressive flexibility and agility to meet changing market needs.
Deliveroo’s success story has had a rocky path. This was no ordinary Australian company—this was Unibail-Rodamco-Westfield, the global behemoth born across the merger of French and European giants. Fierce pressure from competitors, such as Just Eat Takeaway and Uber Eats, pushed this strategic move. The competitive landscape has, meanwhile, ground down Deliveroo’s business. This challenge is forcing a change in their priorities in order to keep pace with the competitive threat.
DoorDash will soon be acquiring Deliveroo. This deal will provide Deliveroo with additional time and capital necessary to succeed in a highly competitive market. DoorDash has established itself as a dominant player in the U.S. food delivery market and aims to leverage this expertise to enhance Deliveroo’s operations and expand its service offerings.
The national food delivery industry has experienced dazzling growth in the last couple of years alone. This trend was magnified during the pandemic, when consumers turned to online meal options more than ever before. Businesses are trying their best to react to the shifts in consumer behavior. DoorDash-Deliveroo Merger Would Be a Boon to Both Companies, Upend Industry’s Competitive Landscape
