It is official: the American Doordashfood delivery giant, will acquire the British Deliveroo for 2.9 billion pounds (about 3.9 billion dollars or 4.5 billion euros).
The acquisition provides for the purchase of all the shares to 180 penny each and represents a 44% prize compared to the closing price of the deliveroo title on 4 April, the date prior to the offer.
Doordash conquers Europe
With the acquisition of Deliveroo, Doordash enters the main European markets for the first time, in direct competition with Just Eat And Uber Eats.
In the United States, the company dominates with about two thirds of the market, but for some time it aims for internationalization: already in 2022 she had acquired the Finn Wolt for 7 billion euros. Now he strengthens his presence in the Old Continent, incorporating a platform well rooted in key countries such as France, Italy, Belgium and United Arab Emirates.
The acquisition of Deliveroo by Doordash had been in the air for days, but now it is something done. This is the comment of Tony xuCEO and co-founder of Doordash:
“I could not be more enthusiastic than what Doordash and Deliveroo will be able to achieve together … we will cover more than 40 countries with a total population of over a billion people, providing local technology and tools to prosper.”
Deliveroo in trouble but with high strategic value
Founded in 2013 by Will Shu, Deliveroo has long been one of the symbols of the European Gig Economy. After the boom during the pandemichowever, the company had to face a sharp slowdown, with strong losses It is a gradual withdrawn from difficult markets such as Hong Kong, Australia, the Netherlands and Spain. Precisely the latter imposed more severe rules for the riders, imposing their framework as employees, an element that, from a purely corporate point of view, represented a criticality.
Despite everything, Deliveroo remains an important asset, especially in the United Kingdom and Ireland, where over 60% of orders are concentrated. The company has recently announced the first annual profit, a signal of a shy return to sustainability after difficult years.
The acquisition is part of a consolidation trend that is transforming the food delivery sector. After the race toexpansion of the pandemic years, the market today lives a phase of slowdownwhere only the large structured groups seem to be able to withstand the competition and regulations of the various states which, moving at different speeds, are increasing the rights of riders, also in response to the judgments of the judiciary and the pressure of the unions.
What changes
The acquisition involves significant changes:
- The first is the end of the dependence of Deliveroo;
- The second is the direct entry of Doordash into Europe, with an infrastructure already ready for the use and personnel already skilled;
- Then there is the reduction of the number of independent players, in a sector in which competition is reducing itself;
- It is possible to provide, already in the short-medium period, a possible reorganization of the operating model, with effects on riders, restaurateurs and consumers;
- It is possible that the acquisition may have repercussions in the global competition between Doordash/Deliveroo, Uber Eats and Just Eat, among others.
It remains now to be understood if the new group will focus on a logic of strengthening brand existing or on a rebranding Under the abbreviation Doordash.
