DoorDash has expressed an interest to acquire meal delivery service Deliveroo, looking to expand to more European markets. The American meal delivery service reportedly offered 2.7 billion pounds (more than three billion euros), which has sent the Deliveroo share price soaring.
Deal or battle?
Deliveroo has responded positively to the offer and has already given DoorDash access to its accounts. If it comes to a formal bid (British rules say DoorDash has until 23 May to make a final offer), Deliveroo has shown itself willing to recommend the deal to shareholders. Analysts have called DoorDash an “ideal candidate” to take over Deliveroo, as the geographical scopes of both companies in Europe do not overlap. Deliveroo is active in Belgium, France, Germany, Ireland, Italy, the Netherlands, Spain and the United Kingdom. DoorDash acquired Wold in 2022, meaning it serves Albania, Austria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, Germany, Greece, Hungary, Iceland, Kosovo, Latvia, Lithuania, Luxembourg, Malta, North Macedonia, Norway, Poland, Romania, Serbia, Slovakia, Slovenia and Sweden.
It is also not yet certain that an acquisition would go so smoothly. Analysts consider the bid to be on the low side, and warn that a bidding war may arise if other competitors were to try their luck. They believe a broader wave of consolidation within the food delivery sector to be likely, evidenced by the recent Prosus acquisition of Just Eat Takeaway for 4.1 billion euros.
Deliveroo is active in twelve countries and works with 135,000 deliverers. The company achieved profitability for the first time last year.
