Doordash announced two major acquisitions on Tuesday as it seeks to expand its reach in Europe and diversify its revenue streams.
Doordash said it has agreed to buy its UK rival Deliveroo for around £2.9 billion (approximately $3.87 billion) as US food delivery companies aim to expand into new markets.
In addition to this, Doordash separately states that it offers Severrooms, Marketing and Operations software with $1.2 billion in cash to help book and manage restaurants, hotels and public venues.
The acquisition of Derveroo gives Doordash access to nine new European markets run primarily by the UK company. Companies bet that their combination scale will also help them compete better with rivals like Just Eat Takeaway and Uber Eats.
Meanwhile, buying Seven Rooms will help restaurant reservations, CRM and guest management functions enter the B2B Commerce platform division, helping the company diversify beyond its food supply.
Doordash pays Deliveroo shareholders at 180p (approximately $2.40) per share. This represents a 44% premium over the latter stock price on April 4th, when the US company approached it with an acquisition offer. Doordash operates in 40 countries and once the acquisition is over, it will serve 50 million active users each month.
Founded in 2013, Derviroo was revealed in 2021 when the grocery and food delivery sector was running high in the post-pandemic tailwinds. People were still at home and were about to work remotely, so they were ordering more takeaway than they would otherwise have. The food and grocery delivery startup was founded in large numbers on bases, attracting a mountain of venture capital.
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However, as Covid has declined and people have returned to shopping in person and headed out to restaurants and cafes, food and grocery delivery startups have struggled to adapt to rapidly changing consumer behavior in suddenly, suddenly busy spaces. It didn’t help that capital began to grow rare in 2022 as interest rates rose and venture investors were holding checks as venture investors sought more profitable investments.
Since the listing, Deliveroo’s shares had fallen by more than 50% until April 4th. In March this year, the company sold its Hong Kong business to delivery heroes, citing fierce competition. He also left Australia in 2022 and faced similar competitive pressures.
Sevenrooms has raised a total of about $75 million per pitchbook so far, saying it has around 13,000 customers including MGM Resorts, Marriott International, Accor Group, Wynn Resorts and Hyatt.
Deliveroo reported revenues of approximately £2 billion (approximately $2.67 billion) and total transaction value of £7.1 billion (approximately $94.9 billion) for the year ended December 2024.
Delivery transactions are expected to close in the fourth quarter of 2025, but the Cebloom acquisition is expected to close in the second half of 2025. Both transactions require regulatory approval.
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