U.S. food delivery giant Doordash attempted to acquire its UK equivalent Deliveroo according to a recent report by Reuters. However, the two sides disagreed on valuation, and the talks have been terminated for the time being.
Doordash reportedly considered buying Deliveroo, one of the top three food delivery companies in the UK, back in 2022. It followed back on the initial interest last month but couldn’t get the deal over the finishing line.
The attempt to acquire Deliveroo is in line with Doordash’s intention to diversify its business and tap into other markets. It previously acquired Finnish food and merchandise delivery company Wolt in a $8.1 billion deal in 2021 as part of the strategy. Besides the United States, where it currently holds an estimated 76% market share, Doordash is currently present in Australia, Canada, Germany, New Zealand, and Japan.
Deliveroo’s shares, which trade on the London Stock Exchange, slipped 1.77% on Tuesday after the news about Doordash’s failed acquisition attempt came out. The company has a market cap of approximately $2.66 billion.
Doordash stock also sunk at one point before bouncing back and finishing 1.25% higher compared to Monday’s opening price. At $112.08, the company’s shares are currently 16.19% up year to date.