Some food delivery fans have been lingering on the idea of a merger between DoorDash and Deliveroo, two of the biggest delivery platforms worldwide.
Well, apparently, it is now about to happen.
Confirmed by Deliveroo only?
On Friday, the media reported that DoorDash is interested in acquiring Deliveroo. Deliveroo is based in Great Britain but operates in several other cities in Europe, Asia, and the Middle East.
Founded by Will Shu and Greg Orlowski in 2013 in London, Deliveroo operates not only in the United Kingdom but also in France, Belgium, Italy, Ireland, Singapore, the United Arab Emirates, and Qatar.
However, what’s interesting is that only Deliveroo has confirmed the acquisition plans, saying DoorDash floated a deal on April 5th to acquire the English platform for $2.40 per share, or around $3.6 billion.
Deliveroo further told the media that it is interested in agreeing to the offer, giving DoorDash until the 23rd of next month to make it official.
But, not even Reuters got an official statement from DoorDash, so there’s a loophole here.
Mixed reactions
People’s opinions about this plan are quite mixed. In a Facebook comment on the Reuters report, Arnold Chambers suggested that DoorDash should focus on other things. Chambers quipped, “[The platform] can concentrate on making UK workers homeless.”
“Don’t take it, don’t take it,” another Facebook netizen, Tae Yu, commented.
“It’s a trap!!! Don’t [do it, they need] out of their Trump alliance,” wrote Jaquelyn Coyle.
Others are quite lenient. Harper Kennedy wrote, “Given that Deliveroo is a British company, what regulatory hurdles might DoorDash face in this proposed acquisition?”
Context
Well, actually, DoorDash could be saying it had issued a statement already before, albeit subtly.
The two companies reportedly already held similar business talks last June, but they couldn’t agree on a valuation, the media stated.
If the deal were to come true, it would expand DoorDash’s presence in Europe. DoorDash also has several business partnerships.
It already controls the continent after it acquired Finland’s Wolt in 2022 for $3.5 billion.
The deal’s completion is projected to continue the trend of global food delivery consolidation following the vast growth of the business during the pandemic. DoorDash operates in over 25 nations.
It is the largest delivery provider in the United States. Last year, it reported over $80 billion in gross order volume and a 24 percent increase in revenue. What do you think of this news?