DoorDash Completes $3.8bn Acquisition of Deliveroo, Bolstering Global Position in Local Commerce

DoorDash has finalized its $3.8bn takeover of UK food delivery platform Deliveroo. The acquisition was implemented under the UK Companies Act and values Deliveroo at £2.9bn. Deliveroo shareholders will receive 180p in cash per share, and the company will continue operating in existing markets under DoorDash's wider group. Miki Kuusi has been appointed CEO of Deliveroo, succeeding founder Will Shu. The merger bolsters DoorDash's position as a global leader in local commerce.

DoorDash has finalized its $3.8 billion acquisition of UK-based food delivery platform Deliveroo, marking a significant milestone in the company's expansion strategy. The acquisition, valued at £2.9 billion, was implemented under the UK Companies Act and will see Deliveroo shareholders receiving 180p in cash per share. The company will continue to operate in its existing markets under DoorDash's broader group.

Miki Kuusi has been appointed CEO of Deliveroo, succeeding founder Will Shu. This merger aims to bolster DoorDash's position as a global leader in local commerce. Deliveroo's extensive presence in Europe and the Middle East will provide DoorDash with immediate scale in these competitive markets, enhancing its global reach and operational capabilities.

The acquisition follows a series of strategic moves by DoorDash, including the purchase of Wolt Enterprises in 2022. This latest deal positions DoorDash to operate in 45 markets worldwide, 30 of which are in Europe. Deliveroo's 7 million monthly active users will complement DoorDash's 42 million, creating a powerful combined platform.

DoorDash's CEO, Tony Xu, emphasized that the integration of Deliveroo's technology and expertise will enable the company to serve more people in more places with greater impact. The acquisition will bring enhanced services for merchants, consumers, and riders, with a focus on faster, smarter experiences, wider selections, and improved safety and support.

The deal has significant implications for procurement, supplier networks, and technology operations. DoorDash will benefit from Deliveroo's extensive network of restaurant, retail, and logistics partners across Europe and the Middle East. This geographical spread will enable DoorDash to standardize supplier engagement and optimize logistics across its global footprint.

Deliveroo's established presence in Europe and the Middle East will serve as a testing ground for DoorDash's recent diversification into restaurant reservations and robot-based deliveries. The integration of these new technologies will require careful vendor management and procurement strategies for advanced hardware, software licensing, and service agreements.

The acquisition shifts competitive dynamics within the European food delivery market, reducing the number of procurement routes available to restaurants and suppliers. Procurement leaders will face decisions on whether to maintain separate supplier contracts for each brand or unify agreements across the expanded portfolio.

Despite the scale of the transaction, regulatory scrutiny remains limited. Market observers note concerns about concentration in the delivery sector, yet approvals proceed without extended investigation. For Deliveroo shareholders, the deal offers an exit following its challenging London Stock Exchange debut in 2021.