DoorDash has acquired British rival Deliveroo for $3.9 billion in cash, expanding its reach across Europe, Asia, and the Middle East.
The San Francisco–based delivery giant will pay $2.40 per Deliveroo share, a 28 percent premium over the company’s closing price on April 24.
Founded in 2013 (the same year as DoorDash) Deliveroo was started by Will Shu and Greg Orlowski. The platform partners with 176,000 restaurants, grocers, and retailers, as well as over 130,000 riders. In 2024, it counted about 7 million monthly active users. Both DoorDash and Deliveroo have long been considered pioneers and leaders in the last-mile delivery space.
“I have decided that now is the right time for me to step down,” Deliveroo CEO and co-founder Will Shu said in a statement to Fortune. “Taking Deliveroo from being an idea to what it is today has been amazing.”
Shu is stepping down as CEO and walking away with roughly $250 million from his 6.5 percent stake.
Deliveroo now operates in nine countries, with the U.K. and Ireland making up the biggest share of its business. It’s also active in France, Italy, Belgium, Singapore, the United Arab Emirates, Kuwait, and Qatar.
In a letter shared on LinkedIn, DoorDash CEO and Co-founder Tony Xu wrote: “When we started DoorDash in 2013, our mission was simple: grow and empower local economies. We wanted to create a world where every local business—small, medium, and large—could connect with every local consumer.”
“It is a mission that we share with Deliveroo, a focus on serving local communities where we operate, and is what has driven my admiration for what they’ve built over the past 13 years.”
Xu added that the Deliveroo app and products aren’t going anywhere. “What excites me is not changing what works, but building it together,” he said.
This is DoorDash’s second big international acquisition in three years, as it continues to grow beyond the U.S., Canada, and Australia. It also purchased Helsinki-based Wolt Enterprises in 2022. Now with Deliveroo, DoorDash will now operate in more than 40 markets globally.
The deal also follows firm Prosus’ agreement to buy Amsterdam-based Just Eat Takeaway.com earlier this year, further shaking up the European food delivery landscape.
