DoorDash is set to acquire UK food delivery rival Deliveroo in a $3.6 billion deal, marking a significant expansion into the UK market.
A DoorDash delivery person pictured in Manhattan in New York City.
Photograph: Carlo Allegri/Reuters
DoorDash is a leading food delivery and logistics company founded in 2013 by four Stanford University graduates.
Headquartered in San Francisco, California, the platform connects customers with local restaurants and food establishments, offering a wide range of cuisines for online ordering and delivery.
With over 20 million active users, DoorDash has become one of the largest food delivery services globally, operating in more than 4,000 cities across North America, Australia, and Europe.
DoorDash, the US-based food delivery app, has made a bid to acquire its UK rival Deliveroo for $3.6 billion (£2.7 billion). The London-based company stated that no ‘firm offer‘ had been made yet, but if a proposal of £1.80 ($2.40) per share is made, it would be open to recommending such an offer to its shareholders.
Deliveroo was founded in 2013 and is the second-largest food delivery app in the UK, with an average of 7.1 million active users in 2024 and £2.07 billion in revenue. The company has been expanding its user base by offering grocery deliveries and non-food items for delivery.
DoorDash, which was founded in 2012, is currently the largest food delivery app in the US, with 42 million monthly active users in 2024 and $10.7 billion in revenue. In 2021, DoorDash acquired Wolt, a Finnish delivery company, for €7 billion (approximately $8.1 billion).
Deliveroo is a leading food delivery company that has revolutionized the way people order and consume 'food'.
Founded in 2013, Deliveroo operates in over 12 countries with a network of over 100,000 riders.
The platform allows users to order from a wide range of restaurants and cuisines, with an average delivery time of under 30 minutes.
According to a report by 'ResearchAndMarkets.com' , the global food delivery market is expected to reach $200 billion by 2025, with Deliveroo playing a significant role in this growth.
Both companies have been trying to expand their services beyond food deliveries, with Deliveroo exploring grocery delivery options and DoorDash investing in non-food item delivery.
DoorDash’s CEO, Tony Xu, expressed his vision for the company during an interview with Fortune in February. He stated that the company’s presence feels like ‘a speck of dust‘ and emphasized the need to address more than just first-party delivery and ordering issues to become a digital powerhouse.
Tony Xu is a Chinese-American entrepreneur and investor.
He co-founded DoorDash, a food delivery company, in 2013 with four other students at Stanford University.
Before founding DoorDash, Xu worked as an investment banker for two years.
In 2020, he was listed on Forbes' 400 Richest People in America list with an estimated net worth of over $6 billion.
The deal would mark a significant expansion for DoorDash into the UK market, where Deliveroo holds a strong position. However, no formal offer has been made yet, and Deliveroo’s board is in talks with DoorDash over the proposal.
