Ion Jauregui – ActivTrades Analyst
DoorDash has made an offer to acquire Deliveroo in a deal that could reshape the home-delivery sector in Europe.
Deliveroo (LON:ROO), the UK delivery platform that debuted on the stock market in 2021 with a valuation of £7.6 billion, is in talks to be acquired by DoorDash (NASDAQ:DASH). The proposal amounts to approximately £2.7 billion, offering £1.80 per share—a 20 % premium over last Friday’s closing price. Since its IPO, Deliveroo’s stock performance has been disappointing: it fell more than 25 % on its first trading day and now trades around £1.46—60 % below its initial listing price. Although the company achieved its first annual profit in 2024, fierce competition from players like Uber Eats (NYSE:UBER) and Amazon (NASDAQ:AMZN) has constrained its growth.
DoorDash Analysis (DASH.US)
DoorDash closed 2024 with revenues of $10 722 million (up 24 % year-on-year) and reported its first full-year GAAP net profit of $117 million. In Q4 2024 it generated $2 873 million in revenue (+25 %), net income of $141 million, processed 685 million orders, and reached a Gross Order Value (GOV) of $21 300 million. From a technical standpoint, the company has consistently hit new milestones since October 2022 and has returned to its 2021 trading range. It currently trades around $185.76 within a band between $181.70 and $213.39. The long-term Point of Control (POC) sits much lower, near $60. Moving-average crossovers suggest the upward trend remains intact and could push the price back to $215.35. If breached, the November 2021 peak of $257.25 may come into play. The RSI stands at 54.16 %, indicating there is still room for further expansion.
Key aspects:
The proposed acquisition is particularly significant because DoorDash— with $10.7 billion in annual revenues and operations in over 30 countries—does not directly compete in Deliveroo’s core markets. This could ease regulatory approval. If completed, it would be a strategic merger with the potential to strengthen DoorDash’s position in the European market.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.