DoorDash's Strategic Acquisition of Deliveroo: A Bold Move in the Global Food Delivery Arena

The food delivery sector continues to evolve, with consolidation emerging as a key strategy for maintaining dominance. DoorDash’s announced acquisition of Deliveroo, valued at £2.9 billion (approximately $3.9 billion), marks a pivotal moment in the global race to capture market share. This deal, which offers Deliveroo shareholders 180 pence per share in cash, represents DoorDash’s boldest international expansion to date.

Deal Overview and Financial Implications

The acquisition, announced on May 6, 2025, carries significant premiums over Deliveroo’s recent trading prices. The 44% premium over its April 4 closing price underscores DoorDash’s confidence in Deliveroo’s undervalued potential. The total consideration values Deliveroo’s equity at £2.9 billion, while its enterprise value (EV) stands at £2.4 billion. This translates to an EV/EBITDA multiple of 13.4x, based on Deliveroo’s 2025 EBITDA guidance of £170–190 million.

The transaction’s structure, via a UK Court-sanctioned Scheme of Arrangement, requires shareholder approval and regulatory clearances. Notably, 15.4% of Deliveroo’s shares are already committed to support the deal through irrevocable undertakings from major shareholders and directors.

Strategic Rationale: Scaling Global Ambitions

The deal’s true value lies in its geographic synergy. DoorDash, primarily a North American giant, gains access to Deliveroo’s 9 markets, including the UK, France, and Italy—regions where DoorDash has limited presence. Combined, the firms will operate in over 40 countries, serving 50 million monthly active users. Deliveroo’s £7.1 billion gross transaction value (GTV) in 2024 and £140 million adjusted EBITDA provide a solid foundation for cross-selling and operational efficiencies.

DoorDash’s CEO, Tony Xu, has long prioritized global expansion. By acquiring Deliveroo, he secures a foothold in high-growth European markets, where food delivery adoption is accelerating. Deliveroo’s last-mile logistics network and merchant relationships in dense urban areas could also complement DoorDash’s tech-driven platform, driving synergies in delivery optimization and customer retention.

Regulatory and Execution Risks

Despite the strategic allure, hurdles remain. The deal must navigate antitrust scrutiny in key markets, particularly the UK and EU, where regulators have grown skeptical of digital platform consolidation. The 13.4x EV/EBITDA multiple may also raise eyebrows, as it exceeds DoorDash’s own forward multiples.

Moreover, Deliveroo’s valuation—£2.9 billion—exceeds its April 2025 market capitalization of £2.2 billion, signaling that DoorDash is betting on Deliveroo’s untapped potential. Shareholder approval hinges on the 75% in value threshold at the Court Meeting, which could be challenged if minority shareholders demand higher premiums.

Conclusion: A Calculated Gamble with Long-Term Rewards

DoorDash’s acquisition of Deliveroo is a high-stakes bet on global scale and cross-border synergies. The £2.4 billion enterprise value and 13.4x EV/EBITDA multiple reflect DoorDash’s belief in Deliveroo’s ability to grow its EBITDA to £190 million in 2025—a 36% increase from 2024. If realized, this would validate the premium paid.

The combined entity’s 50 million monthly active users and £9.1 billion in combined GTV (assuming no overlap) position it as a formidable competitor to Uber Eats and Just Eat Takeaway. However, success hinges on seamless integration, regulatory clearance, and maintaining merchant partnerships without antitrust backlash.

For investors, the deal signals DoorDash’s intent to dominate the global food delivery landscape. While near-term execution risks exist, the strategic alignment and Deliveroo’s undervalued assets make this acquisition a compelling move—one that could redefine the sector’s leadership in the coming years.

In summary, DoorDash’s £2.9 billion bet on Deliveroo is both ambitious and data-backed. With £2.4 billion in enterprise value and a premium that rewards shareholders, the deal sets the stage for a consolidated player poised to capitalize on the $100 billion global food delivery market.