US food delivery giant DoorDash has announced two major acquisitions — snapping up UK-based Deliveroo for $3.9 billion and restaurant booking platform SevenRooms for $1.2 billion — in a bold move to strengthen its international presence and diversify its services.
DoorDash will acquire all issued and to-be-issued shares of Deliveroo at 180 pence each, valuing the British company at £2.9 billion ($3.86 billion) on a fully diluted basis. The offer represents a 44% premium to Deliveroo’s share price before takeover talks were made public in early April.
The deal, unanimously recommended by Deliveroo’s board, caps a turbulent journey for the London-based firm, which went public in 2021 at £3.90 a share but suffered one of the worst debuts in London Stock Exchange history. Shares have fallen more than 50% since its IPO amid post-pandemic demand shifts and gig economy challenges.
Deliveroo CEO and co-founder Will Shu, who is set to receive around £172 million for his 6.4% stake, described the agreement as “a transformative new chapter.” “Together, we will be even better positioned to serve consumers, merchants, riders and local communities,” he said. The merged company will operate in more than 40 countries and serve roughly 50 million monthly active users.
Deliveroo reported £2 billion in revenue and £140 million in adjusted EBITDA for 2024. The company works with over 176,000 restaurants and retailers, and has more than 130,000 riders across nine countries, including the UK, France, Italy, and Singapore.
DoorDash, founded in 2013 and headquartered in San Francisco, currently partners with over 500,000 businesses and serves 42 million monthly users. Its CEO, Tony Xu, said the acquisition would “bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise.”
The company also announced the $1.2 billion all-cash purchase of SevenRooms, a New York-based CRM and booking platform used by restaurants and hotels. The move signals DoorDash’s ambition to build a broader local commerce platform, extending beyond delivery into restaurant operations and marketing tools.
The Deliveroo deal is expected to close in Q4 2025, while the SevenRooms acquisition should complete in the second half of the year, both pending regulatory approval. DoorDash plans to maintain Deliveroo’s London headquarters and limit redundancies, though up to 830 jobs — mostly in administrative roles — could be affected.
DoorDash shares fell 5% after the announcements, following Q1 results that missed revenue expectations despite 21% year-over-year growth and strong order volumes.
Analysts see the Deliveroo acquisition as a direct challenge to Uber Eats and Just Eat in the UK and Europe, potentially reshaping the competitive landscape.
