UK-based food delivery service Deliveroo surges on $3.6B takeover offer from DoorDash

Shares of London based food delivery service, Deliveroo reach three year highs after proposed takeover from DoorDash.

Founded in 2013, Deliveroo is one of the largest food delivery firms in European markets, including the UK, France, Belgium, Ireland, and Italy.

Deliveroo announced the bid on Friday after markets closed in Europe. On Monday, the company followed up by suspending the $133 million share buyback it had previously announced.

While the takeover is still in the proposal stage, Deliveroo stated on Friday that if DoorDash makes an offer under the outlined financial terms, the board will recommend it to shareholders.

Deliveroo has also granted DoorDash access to its private records to allow for due diligence.

DoorDash has until May 23, 2025 to decide whether it plans to make a binding buyout offer.

Many experts believe that this bid is a response to technology investment firm Prosus agreeing to acquire food delivery giant Just Eat Takeaway.com for $4.1 billion. That acquisition would significantly strengthen Prosus’s portfolio in Europe and make it a major competitor to DoorDash.

The proposed acquisition would give DoorDash—which currently operates primarily in the U.S.—a stronger foothold in European markets.

Analysts have noted that the DoorDash offer is unlikely to face significant regulatory hurdles, such as antitrust issues, as the two companies operate in largely separate markets with minimal overlap.