To the American food delivery giant DoorDash’s surprise, its all-stock deal to acquire British food delivery firm Deliveroo hasn’t been as successful. This takeover is valued at £2.9 billion, just shy of $3.9 billion. DoorDash is being very aggressive with this strategic acquisition. It’s looking to use that fuel to triple its reach in the global food delivery market.
Deliveroo clarified that it indeed received a takeover bid from DoorDash. Consequently, its stock prices rocketed, reaching a three-year high immediately after the announcement. The first counter offer only came back on the 4th of April, the last business day before the scheduled public confirmation. This bid is being made at a remarkable 44% premium over Deliveroo’s last stock closing price on that day.
DoorDash’s pending acquisition of Deliveroo would radically accelerate this expansion. Combined, they’ll form a $40 billion-plus powerhouse that could dominate the food delivery industry. Together, they will jointly govern in more than 40 countries representing a combined population of more than 1 billion people. This merger will help consolidate services and ultimately improve resources to the local businesses that depend on food delivery.
Tony Xu, CEO and Co-founder of DoorDash was understandably excited about the acquisition, saying that…He emphasized how the partnership between DoorDash and Deliveroo would create more opportunities for local businesses to thrive.
“I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together. We’ll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive.” – Tony Xu, CEO and Co-founder of DoorDash.
As the merger develops, DoorDash should be able to use its technical knowledge and know-how to expand Deliveroo’s service portfolio. This acquisition is poised to provide Deliveroo with additional resources and tools aimed at supporting local businesses and improving overall service efficiency.