DoorDash is apparently interested in buying Deliveroo, the U.K.-based delivery service that operates in Europe, Asia and the Middle East.
Deliveroo confirmed Friday that DoorDash floated a deal on April 5 to acquire it for $2.40 per share, or about $3.6 billion. The company says it’s interested, and has given DoorDash until May 23 to make the offer official.
DoorDash declined to comment.
The two companies held similar talks last June, but couldn't agree on a valuation, Reuters reported.
The deal would expand DoorDash’s presence in Europe. It already has a foothold there after acquiring Finnish delivery company Wolt in 2022 for $3.5 billion. In total, it operates in more than 25 countries.
The deal would also continue the trend of global food delivery consolidation following the massive growth of the business during the pandemic.
DoorDash is the largest delivery provider in the U.S. In 2024, it reported more than $80 billion in gross order volume and a 24% increase in revenue.
Deliveroo is smaller and has been slower growing recently. It generated about $10 million in gross transaction volume last year, and revenue grew 2%.
Since its IPO in 2021, Deliveroo’s stock had lost about half of its value. But it spiked more than 20% Friday on news of the possible acquisition. DoorDash stock, meanwhile, was up less than 1%.
Deliveroo has blamed a decline in consumer spending for its recent slowdown, an issue that hasn’t impacted DoorDash as much.
Deliveroo was founded in 2013 in London. Like DoorDash, it offers delivery from restaurants and other businesses using a network of gig workers. It currently operates in Belgium, France, Hong Kong, Italy, Ireland, Kuwait, Qatar, Singapore, the United Arab Emirates and the United Kingdom.
It has also left some markets over the years due to competition and regulation.
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