Deliveroo shares rise 18%, trade below value of DoorDash offer

Deliveroo shares rise 18%, trade below value of DoorDash offer

Deliveroo shares have surged 18% following news that DoorDash has tabled an all-cash offer for the UK-based delivery service. The offer, at 180p per share, would value Deliveroo at approximately £3.6 billion [1]. Deliveroo confirmed the offer on Friday, April 5, and has indicated a willingness to accept it if it is made official by May 23 [1].

The potential acquisition would expand DoorDash's presence in Europe, where it already operates through its acquisition of Finnish delivery company Wolt in 2022 for $3.5 billion [1]. DoorDash, the largest delivery provider in the U.S., reported over $80 billion in gross order volume in 2024 and a 24% increase in revenue [1].

Deliveroo, founded in 2013, has been slower growing recently compared to DoorDash. It generated about $10 million in gross transaction volume last year and has seen its stock lose about half of its value since its IPO in 2021 [1]. However, Deliveroo's stock spiked more than 20% on the news of the possible acquisition, while DoorDash's stock increased by less than 1% [1].

The deal would continue the trend of global food delivery consolidation following the pandemic-driven growth of the industry. Deliveroo operates in more than 10 markets, including Belgium, France, Hong Kong, Italy, Ireland, Kuwait, Qatar, Singapore, the United Arab Emirates, and the United Kingdom [2].

Deliveroo's stock was trading at GBX 141.90 on January 1, 2025, and has since increased by 3.3% to GBX 146.60 [2]. The company's stock has received a consensus rating of Buy from analysts [2].

References:
[1] https://www.restaurantbusinessonline.com/technology/doordash-could-buy-uk-based-delivery-service-deliveroo
[2] https://www.marketbeat.com/stocks/LON/ROO/