DoorDash makes bid to buy Deliveroo

DoorDash, the largest takeaway app in the US, has made an cash offer to buy Deliveroo at a price of 180 pence per share.

In a document seen by PMW, the UK-based delivery company confirmed it had received a proposal from DoorDash on April 5 and Deliveroo’s board has decided to engage in discussions of a possible sale.

The current proposal values Deliveroo, which was founded in 2013 by CEO Will Shu, at £2.7 ($3.6) billion. The takeaway giant now operates in 10 markets including the UK, France, Belgium, Qatar and Kuwait.

DoorDash, also founded in 2013, reported a 25% year-on-year growth in revenue to $2.9 billion in Q4 2024. The company, which acquired Finnish delivery firm Wolt in 2021 for $5.2 billion, operates in more than 30 countries—none of which overlap with Deliveroo’s markets.

According to the Financial Times, DoorDash made a similar offer to buyout Deliveroo last summer.

Both companies have been making efforts to expand their advertising arm, particularly within retail media. DoorDash has expanded into the commerce space with partnerships with FMCG brands such as Mars.

Deliveroo struck a partnership with SMG to grow its advertising and media business.

The talks of a takeover come as consolidation within the takeaway app space gathers momentum. Procus bought out Just Eat for €4.1bn earlier this year.

In light of the offer, Deliveroo has suspended its £100 ($134) million share buyback programme—an initiative which could have brought its shareholders returns of £550 ($737.5) million since 2023, according to its March FY2024 results.

Deliveroo said: “There can be no certainty that any offer for Deliveroo will be made. At this time, shareholders are advised to take no action.”

DoorDash has until 23 May to make a firm offer. 

The story first appeared on Campaign's sister title Performance Marketing World.