DoorDash closes on $3.9 billion buyout of Deliveroo in the UK

WASHINGTON (AP) – DoorDash has finalized its acquisition of the U.K. food delivery company Deliveroo, saying Thursday that the boards of both companies approved the nearly $4 billion deal announced earlier this year.

Word of DoorDash’s interest in Deliveroo began to circulate in April and the San Francisco company quickly confirmed that it had agreed to buy Deliveroo for $3.9 billion in cash. The deal, which was approved by a British court, will help DoorDash to expand its business in Europe, Asia and the Middle East.

It’s the second major major international acquisition by DoorDash’s in three years as the company expands from its traditional base in the U.S., Canada and Australia. After the purchase of Deliveroo and the 2022 acquisition of Helsinki’s Wolt Enterprises, DoorDash will operate in 45 markets worldwide, 30 of them in Europe, the company said.

Deliveroo served 7 million monthly active users last year, while DoorDash has 42 million monthly active users. DoorDash is the largest U.S. food delivery platform.

DoorDash this week said that it was expanding the services it offers to customers, including restaurant reservations and deliveries made by robots in some of the markets where it operates.

Deliveroo currently operates in nine countries, including the U.K. and Ireland, which accounted for 59% of its business in 2023. It also does business in France, Italy, Belgium, Singapore, the United Arab Emirates, Kuwait and Qatar.

Both companies were founded in 2013, using the then emerging technology of smartphones to link restaurants and their customers to a network of delivery drivers. Food delivery orders surged globally during the COVID-19 pandemic as people holed up at home and restaurants shut down their dining rooms.

In the May announcement, the companies said that DoorDash would pay 180 pence ($2.40) for each Deliveroo share, 29% more than the closing price on April 24, the day before the offer was first made public.

DoorDash shares were unchanged Thursday morning, near $268 each. They are up close to 60% year-to-date.