The US Doordesh meal delivery company will buy Deliveroo in an agreement that evaluates British rival by about 2.9 billion pounds ($ 3.85 billion), companies said, betting on their combined range and local experience to face competition.
Separately, Doordesh said on Tuesday that it will also buy Sevenrooms, a software company related to compared to New York City, for about $ 1.2 billion.
Analysts said the food delivery sector is ready for greater consolidation, as inflation and reduced income have made consumers more cautious about delivery spending and similar companies had difficulty increasing scale.
The companies revived the negotiations last month and the proposal was confirmed on Tuesday as a final offer, making Deliveroo shares about 2%.
Deliveroo’s founder and executive, Will Shu, who delivered food to a scooter in the early months of the group, said the company has a bright future but faces larger global competitors.
“The advice and I evaluated this and said, ‘Where do we think Deliveroo must be so we can really win?’” He said. “And we think this was the right place for us.”
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The acquisition will help Doordesh increase its market share in Europe, competing with Just Eat and Uber Eats, as it adds the largest market of Deliveroo, the United Kingdom and Ireland to its list, and others.
“In addition to having the basis where we can add scale to our investments in Europe, we have the possibility to introduce new products to the market,” Doordash President Tony XU said in a teleconference.
By 2024, Deliveroo and Combined Doordesh had on the amount of about US $ 90 billion, companies said, with about 7 million and 42 million, respectively, from monthly active users.
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Uber, whose food delivery unit registered strong growth, said on Tuesday it would acquire an 85% stake in the Turkish Trendyol Company online food delivery business for about $ 700 million.
Deliveroo’s largest shareholder, Amazon, which has a 14.38%stake, declined to comment.
