DoorDash Acquires UK’s Deliveroo for $3.86B and SevenRooms for $1.2B: A Strategic Expansion in Food Delivery
On Tuesday, DoorDash made headlines with two significant acquisitions aimed at expanding its presence in Europe and diversifying its revenue streams. The U.S.-based food delivery giant announced its plans to acquire Deliveroo, a leading competitor in the U.K. market, for approximately £2.9 billion (around $3.87 billion). This strategic move is part of DoorDash’s broader initiative to penetrate new markets and enhance its competitive edge against other food delivery platforms.
DoorDash Acquires Deliveroo to Expand European Market
The acquisition of Deliveroo will provide DoorDash access to nine additional markets in Europe, primarily where Deliveroo currently operates. The merger aims to leverage combined resources to better compete with established rivals like Just Eat Takeaway and Uber Eats.
Details of the Acquisition
- Purchase Price: DoorDash will pay Deliveroo shareholders 180 pence (around $2.40) per share, marking a 44% premium over its share price on April 4, when the acquisition discussions began.
- Market Reach: Post-acquisition, DoorDash will operate in 40 countries and cater to approximately 50 million monthly active users.
SevenRooms Acquisition: Strengthening B2B Services
In addition to the Deliveroo deal, DoorDash has announced the acquisition of SevenRooms, a company specializing in CRM, marketing, and operations software for restaurants, hotels, and public venues. This transaction is valued at $1.2 billion in cash and is designed to enhance DoorDash’s B2B Commerce Platform.
Benefits of the SevenRooms Acquisition
Integrating SevenRooms into its services will allow DoorDash to:
- Incorporate restaurant reservation and guest management features.
- Diversify its offerings beyond food delivery.
- Serve a broader range of customers, including major hospitality brands.
SevenRooms has successfully raised approximately $75 million to date and boasts a clientele that includes prestigious names such as MGM Resorts, Marriott International, and Hyatt.
Market Challenges and Future Outlook
Founded in 2013, Deliveroo saw its shares decline by more than 50% since its public listing in 2021. The company has faced intense competition, leading to the sale of its Hong Kong operations to Delivery Hero and its exit from the Australian market. Despite reporting revenues of about £2 billion (around $2.67 billion) and a gross transaction value of £7.1 billion (around $9.49 billion) for the year ending December 2024, it has struggled to adapt to shifting consumer behaviors post-pandemic.
The Deliveroo acquisition is expected to close in Q4 2025, while the SevenRooms deal is projected to finalize in the second half of 2025, pending regulatory approvals.
For more insights into the evolving landscape of food delivery services, check out our related articles on food delivery trends and recent business acquisitions.
