DoorDash, a US-based delivery platform, has agreed to acquire its UK Deliveroo for €3.4 billion (£2.9 billion), the two companies announced in a joint statement on Tuesday.
The merger between the two companies, which have "complementary geographical operations," aims to bolster DoorDash’s position as a global platform, according to the statement.
Founded in 2013, DoorDash operates in over 30 countries and is a market leader in the United States. The San Francisco-based company reported revenue of $10.7 billion (£8 billion) for 2024.
Also established in 2013, Deliveroo operates in nine countries, including Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, the United Arab Emirates, and the United Kingdom.
In March, Deliveroo reported its first-ever annual profit after tax of £2.9 million, on revenue of £2.1 billion. Previously, the company faced significant losses due to high investment costs.
The merger of the two companies will enable the expanded group to operate in countries with a combined population exceeding one billion, they highlighted.
Deliveroo had announced in late April that it was in talks with DoorDash regarding an indicative offer of £1.80 per share, which it has decided to recommend to its shareholders.
