Deliveroo acquisition planned by DoorDash for a worth of 3.9 billion British pounds in the UK market.
Hear the latest buzz on Fox Business! Today, we're talking about DoorDash's acquisition of Deliveroo.
DoorDash has announced its big move to swoop up British rival, Deliveroo, for a staggering $3.85 billion. The deal, set to close by the end of this year, has been finalized after restarting negotiations last month, according to recent reports.
Deliveroo was initially approached by DoorDash with a 180 pence per share proposal, which was confirmed as the final offer. The news boosted Deliveroo stocks by about 2%, trading at 175.6 pence per share, marking an end to the stalemate in previous negotiations over valuation disputes.
Additionally, DoorDash is now partnering with Klarna, a pay-later service, to offer flexible financing to their US customers.
European Dominance 🇪🇺
With this acquisition, DoorDash is gunning for market supremacy in Europe, stiffening its competition against Uber Eats and Just Eat. Deliveroo's major markets consist of Britain and Ireland, which account for 62% of its orders in Q4 2021.
Shares of Deliveroo have been on a downward spiral since its trading debut in 2021, despite meal delivery services flourishing during the COVID-19 pandemic. DoorDash's acquisition of Deliveroo could serve as a network effect—boosting their combined operational strength to outsmart competitors in the European food delivery market.
Pocketing Profits 💰
Founder and CEO of Deliveroo, Will Shu, is set to receive about $229.7 million for his 6.4% stake. Industry giant Amazon, Deliveroo's largest investor with a 14.38% stake in the company, was notably absent from the list of supporters. However, Deliveroo has received commitments from essential investors holding 15.4% of shares, including Shu, Greenoaks, and DST Global.
DoorDash and Deliveroo had orders worth a collective $90 billion last year, hinting at an exciting future for the merged powerhouse. Stay tuned as we continue to monitor the ever-evolving food delivery landscape! 🍔🌮🥣
Reporting by Fox Business and Reuters
- The acquisition of Deliveroo by DoorDash is a strategic move to bolster their trading presence in Europe, aiming to compete more effectively against Uber Eats and Just Eat.
- The integration of technology, such as Klarna's pay-later service, into DoorDash's operations could serve as a competitive advantage in the economy and food delivery market.
