DoorDash Scoops Up UK-Based Deliveroo for $3.9 Billion, Expanding Its International Reach

Delivery app DoorDash is buying U.K.-based Deliveroo for $3.9 billion, the two companies announced.

The acquisition expands DoorDash’s reach to nine new countries that Deliveroo operates in: Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates, and the U.K.

With that additional footprint, DoorDash will cover more than 40 countries with a combined population of more than 1 billion people, said DoorDash chief executive officer Tony Xu.

“The enlarged group will bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise to invest in innovation and execution at an even higher level,” Xu said. “Together, we will work to deliver the best experience for all of our stakeholders, to grow the GDP of cities around the world, and to build the leading global platform for local commerce.”

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Deliveroo marks the second acquisition for DoorDash in recent years. In 2022, DoorDash bought Wolt, a Finnish food-delivery service with a presence in Europe and Asia. Wolt co-founder and CEO Miki Kuusi stayed on to lead DoorDash’s international operations following the acquisition, calling it “the beginning of a new chapter for Wolt.”

The Deliveroo acquisition expands the international footprint even further, which could spell bigger ad revenue opportunities for DoorDash Ads, the delivery app’s retail media network. Uber, which made $1 billion in ads last year, has in part attributed the growth of its advertising business to its international reach. The delivery portion of its business, Uber Eats, currently operates in 45 countries.

Calling it “the beginning of a transformative new chapter,” Deliveroo CEO and co-founder Will Shu said the combined companies will “have the scale to invest in product, technology and the overall consumer value proposition.”