Delivery service Deliveroo experiences significant income growth prior to merging with Doordash
Deliveroo's Takeover by Doordash and Its Financial Performance
The takeover of Deliveroo by American giant Doordash is currently in progress, with the deal expected to close in the fourth quarter of 2025 [1][2][5]. The acquisition values Deliveroo at around £2.9 billion (approximately $3.4 billion) [1].
In the first half of 2025, Deliveroo reported an eight percent increase in revenue and order numbers, reaching £1 billion in sales and 147 million orders [1][2]. Despite this growth, the company posted a net loss of £19.2 million, a contrast to the profit of £1.3 million in the same period last year. This sudden shift to a loss is primarily attributed to higher exceptional items relating to costs associated with the Doordash deal [1][2].
However, Deliveroo states that excluding these acquisition expenses, it would have made a profit of £31.8 million before tax [1][2]. The company's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose 46 percent to £96m [1].
Deliveroo's long-term focus on improving the customer value proposition is paying off, as order frequency and retention continue to improve across all cohorts. The company's retention also improved year on year [1].
CEO Will Shu remains optimistic about the partnership's future benefits and consumer engagement trends, despite the near-term financial hit [1][2]. The acquisition will strategically expand DoorDash’s global presence by giving them access to nine new markets, including key countries such as France, Italy, Singapore, the UAE, and the UK [1][3].
| Aspect | Details | |------------------------------|------------------------------------------------| | Acquisition status | Deal approved; expected closing Q4 2025 | | Valuation | ~£2.9 billion (~$3.4 billion) | | Deliveroo financial impact | 8% revenue/order increase; £19.2m net loss due to acquisition costs | | Profit excluding acquisition costs | £31.8 million pre-tax profit | | Strategic impact | DoorDash gains access to 9 new international markets including UK and EU |
This indicates that while Deliveroo’s profitability is currently impacted by acquisition expenses, the underlying business growth remains solid, and the merger positions both companies for stronger global reach [1][2][3][5]. The first half of this year has been positive for Deliveroo, according to Shu [1]. The company has also announced another exit from London's Stock Exchange.
In light of Deliveroo's substantial growth, the forthcoming technology-driven merger with Doordash is anticipated to significantly broaden their general-news horizons, as it provides access to nine new markets, particularly France, Italy, Singapore, the UAE, and the UK. This strategic expansion is expected to enhance Deliveroo's market performance, positioning both companies for a stronger global presence [1][3].
Despite the recent net loss due to acquisition expenses, the underlying business growth of Deliveroo remains strong, indicating a positive trend in technology markets [1][2]. This optimistic outlook is supported by Deliveroo's solid financial performance in the first half of the year, with an 8% increase in revenue and order numbers [1].
