U.S. delivery giant DoorDash has agreed to acquire the British food delivery company Deliveroo for £2.9 billion ($3.9 billion), according to a joint statement issued by both companies on Tuesday.
The merger is expected to bolster DoorDash’s position as a global player by leveraging the two companies’ complementary geographic operations, according to media reports.
Founded in 2013, DoorDash is a market leader in the U.S. and currently operates in over 30 countries. The San Francisco-based company reported revenues of $10.7 billion in 2024.
Deliveroo, also founded in 2013, operates in nine countries including the UK, France, Italy, Belgium, Ireland, Singapore, the UAE, Kuwait, and Qatar. After years of losses due to high investment costs, Deliveroo reported a post-tax profit of £2.9 million in March 2024, with annual sales reaching £2.1 billion.
The companies noted that the merger will create a platform operating in countries with a combined population exceeding one billion people. In April, Deliveroo revealed it had entered into discussions with DoorDash over an indicative offer of £1.8 per share and recommended the offer to its shareholders.
DoorDash has stated it does not plan to restructure Deliveroo or move its headquarters, nor does it intend to make significant changes to delivery drivers’ working conditions—unless required by shifts in regulatory policies.
The employment status of tens of thousands of food delivery drivers remains a contentious issue. While the UK Supreme Court ruled in late 2023 that delivery riders cannot be classified as employees or represented by a union, Spain took the opposite stance in 2021 by mandating employee status for platform workers — a move that led Deliveroo to exit the Spanish market.
