Deliveroo Sees Dynamic Growth Amid $3.6B Takeover Bid from DoorDash: What This Means for Food Delivery Fans

Deliveroo’s shares soared to a three-year high this Monday after DoorDash proposed a $3.6 billion takeover offer. This news broke after European markets closed on Friday. In light of this development, Deliveroo announced it would pause a $133.5 million share buyback previously planned.

The board at Deliveroo informed DoorDash that if a formal offer aligns with the financial terms proposed, they would recommend it to their shareholders. They have opened discussions with DoorDash and allowed access for due diligence. DoorDash must decide by May 23 whether to move forward with a firm buyout offer.

This potential deal comes shortly after Prosus acquired Just Eat Takeaway.com for €4.1 billion ($4.29 billion), aiming to strengthen its presence in Europe’s food delivery market. DoorDash, which operates in the U.S., Canada, New Zealand, and Australia, is also eager to expand its footprint.

Since its founding in 2013, Deliveroo has reached 10 markets, including the U.K., Italy, and France. The company celebrated its first annual profit last year. Furthermore, Delivery Hero recently sold its minority stake in Deliveroo after just under three years, having collaborated earlier this year to buy some of Deliveroo’s assets in Hong Kong when Deliveroo exited that market.

According to Ronald Josey from Citi Investment Research, DoorDash has solid reasons for its interest in Deliveroo. He noted, “Although DoorDash primarily focuses on organic growth, acquiring Deliveroo could expand their market reach faster and provide long-term cash flow, which would take longer to achieve through organic means.”

Interestingly, a recent survey showed that 64% of consumers are exploring different food delivery apps compared to last year, indicating a shifting landscape in the market. As competition rises, moves like this could reshape how delivery services operate globally.

Deliveroo’s shares jumped over 17% on the London Stock Exchange following the announcement, highlighting investor optimism. With such significant potential changes on the horizon, it will be fascinating to see how this merger mania unfolds in the food delivery sector.

You can find more details on this evolving situation through industry reports such as [Statista](https://www.statista.com/) and news outlets like [Reuters](https://www.reuters.com/).

Check out this related article: Understanding Expiration Dates: Why We Discard Safe Food and How It Affects You | Food Poisoning News