DoorDash Scoops up British Rival Deliveroo in Global Push
DoorDash binged Wednesday on British delivery rival Deliveroo, which it is set to acquire in a $3.9 billion deal.
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DoorDash must be in the mood for bangers and mash: It struck a $3.9 billion deal to take over British rival Deliveroo. And for dessert, the company plans to shell out another $1.2 billion on hospitality software company SevenRooms.
The multi-billion dollar deal spree comes after DoorDash posted a $193 million profit in the first quarter, reversing its loss from the same time last year. Moving forward, international expansion could help DoorDash own the global economy of direct-to-porch pad Thai.
Competing to Fill Your Sunday Pho Order
Nearly 30% of Americans order from food delivery apps at least once a week, YouGov found, and that figure rises to nearly 40% among Gen Z and Millennials. DoorDash accounts for most of those orders: It’s the top US delivery app with 67% market share.
But DoorDash isn’t stopping with the states. In 2022, DoorDash bought Wolt, a delivery app serving 23 countries, for $8.1 billion. Once it acquires Deliveroo, DoorDash will serve about 50 million monthly users in more than 40 countries:
- Deliveroo’s strongest market is the UK, where it commands a leading 38% share, according to Bernstein. But rival Just Eat has been gaining ground, and DoorDash may have been in a rush to nab Deliveroo after investment group Prosus agreed in February to buy Just Eat for $4.6 billion.
- Uber, the No. 2 US delivery app with 23% of the market, has also been going global. Yesterday, it announced an agreement to buy an 85% stake in Turkish delivery biz Trendyol Go. Uber also tried to buy, but ended up pulling its bid for, Taiwanese delivery app Foodpanda recently.
Messy Food Fight: Uber sued DoorDash in February, claiming the US market leader shut Uber Eats out by using anti-competitive tactics such as threatening restaurant owners with less visible spots on the DoorDash app. DoorDash sought to dismiss the suit last month, calling it a “calculated scare tactic.” While the US market is essentially a duopoly, smaller rivals abroad have come to dominate other regions and DoorDash and Uber now want a bite.
