A potential combination of meal delivery companies Doordash and Deliveroo was reportedly discussed but rejected in May.
Doordash approached Deliveroo about acquiring that company at that time, but talks between the two firms ended when they couldn’t agree on a valuation, Reuters reported Tuesday (June 25).
There are no talks going on now, according to the report.
The online food delivery sector has seen a slowdown since the pandemic, and that has weighed on Deliveroo’s shares, which have fallen by 68% since their high in August 2021, the report said.
The British company has 180,000 restaurant and retail partners, and a network of 140,000 riders, per the report.
It was reported in 2022 that Doordash considered buying Deliveroo at that time.
In 2021, Doordash acquired its Finnish rival, Wolt, according to the report.
It was reported in May that food delivery platforms have seen more than $20 billion in losses since going public.
Shares in the four biggest, publicly traded U.S./European delivery apps — DoorDash, Delivery Hero, Just Eat Takeaway and Deliveroo — are trading below the peaks they reached during the pandemic.
Back then, those companies were fueled by growth during the lockdown; now they find themselves grappling with a cutback in consumer spending.
DoorDash is among the same-day delivery aggregators that continue to look for everyday categories to drive usage, leading them to step up their grocery presence.
For example, DoorDash partnered with Aldi on a promotion in which consumers who order meat or seafood are entered to win a $250 credit to get a private chef to prepare their order.
In another effort to make its grocery offerings more accessible, DoorDash announced a partnership with Forage to expand Supplemental Nutrition Assistance Program (SNAP) Electronic Benefits Transfer (EBT) acceptance on its marketplace.
Similarly, Deliveroo has been pushing past its restaurant roots. The company has been growing its retail offering and its advertising business alongside its restaurant and grocery businesses.
The firm launched Deliveroo Shopping in November, enabling customers to order retail items such as electronics and toys, and has indicated plans to expand into other categories like pharmacy, home care and pet care.