DoorDash agrees to acquire UK rival Deliveroo | Australian Markets

DoorDash, the ever present US food supply app, has agreed to acquire British rival Deliveroo for Stg2.9 billion ($A6 billion) in money, increasing its business in Europe, Asia and the Middle East.

San Francisco-based DoorDash pays 180 pence ($A3.70) for every Deliveroo share, 29 per cent more than the closing price on April 24, the day earlier than the offer was introduced, the businesses stated earlier than the London Stock Exchange opened for trading on Tuesday.

The deal is DoorDash’s second main worldwide acquisition in three years because the company expands from its conventional base within the US, Canada and Australia.

After the acquisition of Deliveroo, and the 2022 acquisition of Helsinki-based Wolt Enterprises, DoorDash will operate in more than 40 markets worldwide.

“I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together,” DoorDash CEO Tony Xu stated within the assertion.

Both firms had been based in 2013, utilizing the then rising technology of smartphones to hyperlink eating places and their clients to a community of supply riders.

Deliveroo operates in 9 nations, together with the UK and Ireland, which accounted for 59 per cent of its business in 2023.

It additionally does business in France, Italy, Belgium, Singapore, the United Arab Emirates, Kuwait and Qatar.

The acquisition comes much less than three months after technology investment company Prosus agreed to buy Amsterdam-based Just Eat Takeaway.com for 4.1 billion euros ($A7.1 billion), boosting its food supply portfolio in Europe.