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Doordash held talks with UK's Deliveroo on takeover

Economic Times · 10m

Doordash, the U.S. meal delivery group, expressed interest in acquiring Deliveroo, the British food delivery company. Talks ended due to disagreement over valuation, and there are currently no ongoing negotiations between the two companies. Deliveroo's shares have plummeted since August 2021, but increased following the news of the potential takeover. Doordash's New York-listed shares also experienced fluctuations. The COVID-19 pandemic, decreasing demand for online food delivery, and investors' preference for more profitable companies have negatively impacted Deliveroo's shares. Deliveroo works with numerous restaurants and retail partners and operates a network of riders. Amazon is Deliveroo's largest shareholder. The valuation gap between U.S. and European food delivery companies may lead to further cross-border M&A activity in the industry.