U.S.-based meal delivery giant DoorDash has agreed to acquire British competitor Deliveroo for £2.9 billion ($3.85 billion), the companies announced Tuesday. The deal is aimed at expanding

DoorDash’s presence in Europe and intensifying competition with rivals like Uber Eats and Just Eat.

DoorDash revived acquisition talks last month, offering 180 pence per share—a proposal that has now been confirmed as the final offer. Deliveroo shares rose nearly 2% to 175.6 pence following the announcement. Previous discussions had stalled over valuation differences.

DoorDash said it does not plan to raise its bid but reserves the right to do so if a competing offer emerges.

Deliveroo, which gets 62% of its order value from the UK and Ireland, has faced a difficult run since its 2021 IPO, when shares were initially priced at 390 pence. The acquisition will give DoorDash access to Deliveroo’s key markets, including France and Italy, without significant regulatory challenges, as the U.S. firm currently has little presence in those regions.

Deliveroo’s independent committee unanimously recommended the deal. “Following careful consideration, the committee believes this offer is in the best interests of shareholders and stakeholders,” said Chair Claudia Arney.

Major shareholders supporting the offer include Deliveroo founder and CEO Will Shu, Greenoaks, and DST Global—who together hold about 15.4% of shares. Notably absent from that list is Amazon, Deliveroo’s largest investor with a 14.38% stake. Analysts at Panmure Liberum view Amazon as a potential rival bidder, though the company has not commented.

Combined, Deliveroo and DoorDash handled about $90 billion in orders in 2024. Will Shu, who founded Deliveroo in 2013, is expected to earn approximately £172.4 million from his 6.4% stake in the company. Photo by Môsieur J. [version 9.1] from Rouen, FRANCE, Wikimedia commons.