DoorDash is buying British rival Deliveroo for $3.9 billion
DoorDash has agreed to purchase British food and grocery delivery service Deliveroo for $3.9 billion, the companies have revealed in a filing with the London Stock Exchange. The acquisition will "strengthen DoorDash's position as a leading global platform," the filing said. Deliveroo operates in nine regions, namely Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom. All those regions are new for DoorDash and will give the combined companies access to a total population that exceeds 1 billion people.
It doesn't sound like DoorDash is erasing Deliveroo's brand after it takes over. Instead, they'll both be part of an "Enlarged Group" operating in multiple regions around the world, giving DoorDash an expanded presence in Europe and giving it an entry into the Middle Eastern market. "Both companies are highly complementary, whether in their geographic footprints or their missions, and I am confident that being part of the Enlarged Group will accelerate the realisation of Deliveroo's full potential," Deliveroo chair Claudia Arney said in a statement.
The acquisition is still subject to regulatory and antitrust approvals. As CNBC noted, though, this marks the end of Deliveroo's problems as a public company. It has faced a lot of competition and legal challenges after a period of abundance for food delivery services during the COVID-19 lockdowns, and its share prices have plummeted since it went public in 2021. Before the company went public, Amazon took on the UK's Competition and Markets Authority to become a major investor in Deliveroo. The e-commerce company was the leading investor in a funding round worth $575 million and owned a 16 percent stake in the food delivery service.This article originally appeared on Engadget at https://www.engadget.com/apps/doordash-is-buying-british-rival-deliveroo-for-39-billion-123005055.html?src=rss
