In a significant move to strengthen its international presence, DoorDash (DASH) has announced the acquisition of UK-based food delivery service Deliveroo (GB:ROO) for $3.9 billion. The deal marks a bold step in DoorDash’s global expansion strategy, enabling the company to tap into the competitive European market.
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The news comes just ahead of DoorDash’s revised Q1 2025 earnings report, now scheduled for Tuesday, May 6, after initially planning to release the results on Wednesday.
Inside the $3.9B DoorDash-Deliveroo Acquisition
As part of the deal, DoorDash agreed to acquire all issued and to-be-issued shares in Deliveroo at 180p per share. This offer represents a 44% premium over Deliveroo’s closing price on April 4, which was the last business day before DoorDash’s initial offer letter. The acquisition values Deliveroo at £2.9 ($3.9) billion on a fully diluted basis.
Meanwhile, DoorDash stated that the financial terms of the acquisition are final and will not be adjusted unless a third party submits a competing bid.
Following the announcement, FTSE-listed ROO stock gained over 2% at the time of writing.
Food Delivery Giants Merge
While DoorDash is a dominant player in the U.S. market, Deliveroo brings valuable international experience and a strong customer base across Europe, Asia, and the Middle East. Notably, Deliveroo’s largest markets, Britain and Ireland, accounted for 62% of its total order value in Q1 2025, underscoring its strong position in the region.
Together, the two companies can leverage their combined technology, operational expertise, and global reach to accelerate growth and expand market share in the highly competitive food delivery sector.
Furthermore, with this deal, DoorDash is poised to increase its market share in Europe, where it will face competition from Just Eat (JTKWY) and Uber Eats (UBER).
Is DoorDash a Good Stock to Buy?
According to TipRanks consensus, DASH stock has a Moderate Buy rating based on 22 Buys and eight Holds assigned in the last three months. The DoorDash stock price forecast is $218.24, which is 6.25% above the current price level.
Year-to-date, DASH stock has gained over 20%.
