DoorDash, which controls two-thirds of the restaurant delivery market in the US, will expand its presence to more than 40 countries with the acquisition of Deliveroo. Last year, the two companies had gross order value of about $90 billion and combined monthly active users of 50 million.
DoorDash said its offer was final and would not be increased unless another bidder made an offer to buy the British company. Deliveroo directors, including CEO Will Shue, agreed to offer their shares in the deal, and DoorDash said it had agreements with investors representing 15.4% of the shares at the time. The deal must be approved by shareholders representing 75% of Deliveroo’s shares.
The offer is the latest example of consolidation in the industry after Prosus NV agreed to buy Amsterdam-based Just Eat Takeaway.com NV in February.
Food delivery companies are being forced to consolidate after a rapid acceleration during the Covid-19 pandemic slowed growth in the years that followed. A new generation of global players with deep pockets are now competing for customers across borders.
Source: Bloomberg
