Hello followers! Today, we’re diving into the exciting world of food delivery mega-mergers. Grab your virtual forks and let’s dig in!

DoorDash, the big name in U.S. food delivery, is set to buy Deliveroo from the U.K. for nearly $3.9 billion. This move aims to boost DoorDash’s presence across Europe, unlocking access to nine new markets where Deliveroo is active. Once the deal closes, DoorDash will serve around 50 million monthly users in 40 countries, competing fiercely with rivals like Uber Eats and Just Eat.

Founded in 2013, Deliveroo went public in 2021, riding high on pandemic-driven demand for food and grocery delivery. But as restrictions eased and consumer habits shifted back to dining out, the industry faced tough adjustments. The company faced stiff competition in markets like Hong Kong and Australia, and its share value dropped over 50% since its listing. Recently, Deliveroo sold its Hong Kong operation and exited Australia due to fierce competition and market pressures.

In the recent deal, DoorDash offered shareholders 180 pence per share, a hefty 44% premium over Deliveroo’s April 4 stock price. This acquisition not only broadens DoorDash’s global footprint but also consolidates its stance against other market players. Deliveroo’s revenue in 2024 reached about £2 billion, with a gross transaction value of £7.1 billion, reflecting its still-strong market size despite recent challenges.

This partnership marks a significant step for DoorDash as it aims to extend its reach beyond North America, leveraging Deliveroo’s established European operations. The industry remains lively, with companies bracing for evolving consumer behaviors post-pandemic—and this merger might just be the catalyst for a new era in food delivery!