DoorDash to buy UK’s Deliveroo for $3.86B

DoorDash said on Tuesday it has agreed to buy its U.K. rival Deliveroo for about £2.9 billion (around $3.29 billion), as the U.S. food delivery company seeks to expand into new markets. DoorDash will pay Deliveroo shareholders 180 pence per share, which represents a premium of 44% over the latter’s share price on 4 April, when the U.S. firm approached with its acquisition offer, the companies said. The deal would give DoorDash access to nine new markets in Europe, where Deliveroo operates in primarily. The companies are betting their combined scale would also help them compete better with rivals such as Just Eat Takeaway and Uber Eats. DoorDash said it would operate in 40 countries and serve a total of 50 million monthly active users once the acquisition closes. Founded in 2013, Deliveroo went public in 2021, when the grocery and food delivery sector was riding high on post-pandemic tailwinds — people were still trying to stay home, work remotely, and so were ordering takeout more ... Read full article.