DoorDash closes on $3.9 billion buyout of Deliveroo in the UK

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. acquisition / ˌæk wəˈzɪʃ ən / (n.) – the act of one company buying or taking control of another company
    Example:

    The company’s latest acquisition helped it expand into the Asian market.


     


  2. circulate / ˈsɜr kyəˌleɪt / (v.) – to move or spread from one person or place to another
    Example:

    The news about the company’s new product quickly began to circulate online.


     


  3. account for (something) / əˈkaʊnt fɔr / (phrasal v.) – to form part of a total or amount
    Example:

    Tourism accounted for about 20% of the country’s economy.


     


  4. surge / sɜrdʒ / (v.) – to suddenly increase or move forward with strong force
    Example:

    Electricity demand surged during the hot summer months.


     


  5. shut down (something) / ʃʌt daʊn / (phrasal v.) – to stop a business or a system from operating
    Example:

    The company had to shut down its factory due to high costs.


     


Article

Read the text below.

DoorDash has finalized its acquisition of the U.K. food delivery company Deliveroo, saying that the boards of both companies approved the nearly $4 billion deal announced earlier this year.


Word of DoorDash’s interest in Deliveroo began to circulate in April, and the San Francisco company quickly confirmed that it had agreed to buy Deliveroo for $3.9 billion in cash. The deal, which was approved by a British court, will help DoorDash to expand its business in Europe, Asia and the Middle East.


It’s the second major international acquisition by DoorDash’s in three years as the company expands from its traditional base in the U.S., Canada and Australia. After the purchase of Deliveroo and the 2022 acquisition of Helsinki’s Wolt Enterprises, DoorDash will operate in 45 markets worldwide, 30 of them in Europe, the company said.


Deliveroo served 7 million monthly active users last year, while DoorDash has 42 million monthly active users. DoorDash is the largest U.S. food delivery platform.


DoorDash said that it was expanding the services it offers to customers, including restaurant reservations and deliveries made by robots in some of the markets where it operates.


Deliveroo currently operates in nine countries, including the U.K. and Ireland, which accounted for 59% of its business in 2023. It also does business in France, Italy, Belgium, Singapore, the United Arab Emirates, Kuwait and Qatar.


Both companies were founded in 2013, using the then emerging technology of smartphones to link restaurants and their customers to a network of delivery drivers. Food delivery orders surged globally during the COVID-19 pandemic as people holed up at home and restaurants shut down their dining rooms.


In the May announcement, the companies said that DoorDash would pay 180 pence ($2.40) for each Deliveroo share, 29% more than the closing price on April 24, the day before the offer was first made public.


DoorDash shares were unchanged on October 2, near $268 each. They are up close to 60% year-to-date.


This article was provided by The Associated Press.


 


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • DoorDash is expanding its business beyond the U.S. into Europe, Asia, and the Middle East after acquiring Deliveroo. Do you think a company becomes stronger or weaker when it grows too quickly across the world? Why? Discuss.
  • Should a company focus on being global, or is it better to stay strong in its home market first? Why do you say so? Discuss.

Discussion B

  • Food delivery orders grew fast during the pandemic when people stayed home. In your opinion, have people become too used to ordering food instead of cooking or eating out? Why or why not? Discuss.
  • Do you think this trend of food delivery will continue, or will people return to traditional dining? Why do you say so? Discuss.