DoorDash has completed its deal to take over the British food delivery service Deliveroo, providing a huge expansion for the American company. The agreement, worth close to $4 billion, was approved by both companies’ boards. By making this acquisition DoorDash will be able to expand its footprint into the European, Asian and Middle Eastern markets.
That spring was when the deal was originally announced. DoorDash’s final offer was 180 pence ($2.40) per share of Deliveroo. This bid would amount to a 29% premium over Deliveroo’s last trading price on April 24th. As of 2023, Deliveroo’s shares have surged nearly 60% year-to-date, reflecting investor confidence in the company’s growth potential.
Deliveroo operates in nine countries, including the U.K., Ireland, France, Italy, Belgium, Singapore, the United Arab Emirates, Kuwait, and Qatar. U.K. and Ireland combined made up 59% of Deliveroo’s business on their own this year, in fact. DoorDash is methodically increasing its geographic footprint. This change focuses their expansion on areas with increasing demand for food delivery.
DoorDash and Deliveroo were founded in 2013. Using the power of the latest smartphone technology, these innovative companies are bringing restaurants and customers together with food delivered by contract drivers. With this acquisition, DoorDash is doubling down on what they’re already winning at. It puts the company on a better footing to compete in global markets.
Following this acquisition, DoorDash will be active in 45 total markets across the globe. To Domino’s, the appeal lies in Deliveroo’s much more established infrastructure. In doing so, it hopes to increase its footprint outside of North America.
