Sure, you have heard the recent news in the delivery industry: the biggest food delivery in the UK, Deliveroo, is now acquired by DoorDash.
Despite the considerable discussion circulating around, both companies actually expressed optimism about the combination, looking to better serve businesses, consumers, and couriers.
Founded in 2013 by Will Shu, Deliveroo has expanded its operations to nine countries and worked alongside a global network of more than 130,000 riders.
In 2024, Deliveroo’s sales reached roughly £2 billion.
And now, the popular British online food delivery company is stepping into a new transformative chapter of their business.
But what would this merger entail to the future of Deliveroo?
This merger has sparked discussion about the future of both platforms and how it could impact the overall food delivery landscape. Deliveroo’s acquisition is still new, so there’s much we still don’t know at this stage, but perhaps we can take a glimpse of how it can go by looking at DoorDash’s 2021 acquisition of Wolt—a move that that strategically broadened its global reach—allowing them to expand their operations to 27 more countries worldwide.
Upon acquiring Wolt, DoorDash strategically appointed Wolt CEO Miki Kuusi to lead the combined international operations under DoorDash CEO Tony Xu. This key decision is to ensure a seamless transition and leveraging existing expertise by keeping Wolt consumer app to run independently. They also preserved Wolt’s brand, technology, team, central functions, and market presence, ensuring continuity.
With a €500 million retention fund to retain all 4,000 Wolt employees, DoorDash ensured vital talent and accelerated global expansion through rapid product development and optimised resource allocation under Kusi’s leadership.
The acquisition of one delivery service by another often translates to several things: broader selection of restaurants, enhanced service quality, more accurate delivery time, wider service area, and more exciting deals. This consolidation can also lead to increased operational efficiency, potentially resulting in more competitive pricing or frequent promotions for users, making the overall delivery experience smoother and more comprehensive for consumers.
“We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders and local communities. The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition.” said Mr Shu (Source: Independent UK News)
Yes, currently DoorDash holds the largest market share (67%) of the US food delivery market, with reportedly 42 million active users.
The deal is expected to be completed by the end of 2025, subject to regulatory and shareholder approvals.
DoorDash operates in over 4,000 cities across the United States, Canada and Australia. With the acquisition of Deliveroo, its operations has expanded its reach, now operating across the majority of European countries as well.
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