DoorDash recently revealed plans to buy the U.K.-based food and grocery delivery platform, Deliveroo. The agreement is worth nearly £2.9 billion—that’s around $3.29 billion. This move will strengthen DoorDash’s foothold in the cut-throat European market. Deliveroo has been fighting an uphill, bloody battle against its vicious competition in Europe including Just Eat Takeaway and Uber Eats.
Launched in 2013, Deliveroo quickly established itself as one of the stars of the booming food delivery industry. The company had a booming debut on the stock market in 2021, cashing in on the growth in online delivery that has accompanied the pandemic. In the fiscal year ending in December 2024, Deliveroo had some dazzling numbers. Their revenues rocketed up to just under £2 billion, and they just announced a gross transaction value of £7.1 billion.
Despite its rapid expansion, Deliveroo faced several difficulties across international markets. In 2022, the competitive landscape forced the company to incur the loss from exiting the Australian market. This move up the street would soon find itself in a very cluttered place — the food and grocery delivery market. Protecting existing market share has never been more difficult.
DoorDash’s recent acquisition of Wolt provides another glimpse into the changing priorities in the landscape of the delivery industry. Analysts suggest that this move could bolster DoorDash’s operational capabilities and expand its customer base across the U.K. and beyond. DoorDash is looking to capitalize on Deliveroo’s existing robust infrastructure and brand power. We understand their desire to find new revenue streams and develop their service offerings.
Deliveroo’s robust performance in the run-up to the acquisition reflects its upward potential despite heavy competitive pressure. The company’s ability to adapt to market demands and innovate within the delivery space will be crucial as it integrates with DoorDash’s existing operations.
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