DoorDash has recently expressed interest in acquiring the British food delivery company Deliveroo, but discussions between the two companies have stalled due to differences in valuation, Reuters has reported.
Sources told the publication that there are currently no active discussions between the companies.
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Both Doordash and Deliveroo have refrained from commenting.
The global food delivery sector has experienced a downturn in demand since the peak of the Covid-19 pandemic, and this has been a major contributing factor to Deliveroo’s share performance struggles since its March 2021 initial public offering (IPO).
Deliveroo collaborates with 180,000 restaurants and retailers and maintains a fleet of 140,000 riders.
Deliveroo has reported a 2% increase in order growth in the first quarter of 2024, driven by its performance in France, the United Arab Emirates and Hong Kong.
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By GlobalDataIts gross transactional value rose 6% to £1.83bn, indicating a measure of orders placed through its platform.
Amazon holds the largest share in Deliveroo with a 13.23% stake, followed by DST Global at 7.54%. Deliveroo CEO Will Shu possesses a 6.46% share, according to London Stock Exchange Group data.
Shu, who co-founded Deliveroo in February 2013, initially held Class B shares granting him significant voting rights, but these were converted to Class A shares this year as per the company’s IPO prospectus.
With a market value of $46.57bn, Doordash first considered purchasing Deliveroo in 2022, but neither company commented on the speculation.
Doordash CEO Tony Xu, interviewed in the Financial Times in 2024, revealed the company’s strategy to expand beyond the US market.
This strategic shift was underscored by Doordash’s acquisition of Finnish rival Wolt in 2021 for $8bn.
Through Wolt’s acquisition, which closed in June 2022, DoorDash aimed to expand its global footprint, accelerate product development and enhance investment efficiency.
