On Tuesday, DoorDash unveiled plans to acquire the U.K. food delivery company Deliveroo for approximately £2.9 billion (around $3.87 billion), marking a significant step in its strategy to broaden its European presence and diversify revenue streams. This deal is expected to grant DoorDash access to nine new European markets, enhancing its competitive edge against rivals such as Just Eat Takeaway and Uber Eats. DoorDash intends to pay Deliveroo shareholders £1.80 per share, offering a 44% premium based on the company’s share price before the acquisition bid.
In a separate move, DoorDash is set to purchase SevenRooms for $1.2 billion in cash. SevenRooms provides essential software services, including CRM and guest management, aimed at restaurants, hotels, and public venues. This acquisition aims to enhance DoorDash’s B2B Commerce Platform, allowing for an expansion beyond mere food delivery.
These acquisitions come at a time when Deliveroo’s performance has been under pressure. The company went public in 2021 amid a surge in demand for delivery services during the pandemic, but has since witnessed a decline of over 50% in its share price. In response to mounting competition, Deliveroo exited the Australian market in 2022 and recently sold its Hong Kong operations to Delivery Hero.
Deliveroo generated around £2 billion (approximately $2.67 billion) in revenue and £7.1 billion (about $9.49 billion) in gross transaction value for the year ending December 2024. The integration of Deliveroo will expand DoorDash’s global reach to 40 countries, serving 50 million monthly users once the deal is finalised.
The closing of the Deliveroo acquisition is anticipated in the fourth quarter of 2025, while the SevenRooms purchase is expected to be completed in the latter half of 2025, pending regulatory approvals.
These strategic moves reflect DoorDash’s ongoing efforts to adapt to the evolving market landscape and capture more of the growing demand for diverse food and service delivery options.
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