DoorDash is said to have held takeover talks with Deliveroo last year

Dan Kitwood/Getty Images News

DoorDash (NYSE:DASH) is said to have held talks about a potential takeover of Deliveroo (OTCPK:DROOF) last summer, though a deal never came to fruition, according to a Sunday Times report.

A combination would have created a food-delivery firm with 4 billion pounds ($5.2B) in sales, according to the paper. DoorDash has a market cap of $31B.

DoorDash (DASH) instead in November agreed to acquire Helsinki-based food-delivery startup Wolt in an all-stock deal worth approximately $8.1B

DoorDash (DASH) reportedly held talks to purchase Instacart (ICART) last summer that may have valued the grocery delivery company at $40B to $50B, The Information reported in August.

Deliveroo (OTCPK:DROOF) went public last March in London and its share have tumbled more than 70% sine then. DoorDash went public in December 2020 at a price of $102/share and its stock has dropped 12% since the IPO.

DoorDash (DASH) last month launched express grocery delivery in partnership with Albertsons Companies (NYSE:ACI) to deliver fresh groceries in under 30 minutes, .

DoorDash last week said it agreed to acquire hospitality technology startup Bbot.

Comments

[SA Analyst Are Bag Holders]

Seeking Alpha love reporting the same news over and over in hopes that maybe at least one person out there will be foolish enough to buy a couple shares of Doordash.

[CatchTheFallingKnife]

Good thing Uber/DoorDash pulled out of the bidding war. Instacart is currently valued at $10B - $12B in the private market.

[SA Analyst Are Bag Holders]

@CatchTheFallingKnife source showing instacart $10-$12 value?

[TastyLaksa]

What happens when you add negative earnings to negative earnings? Do you get positive?

[Charles Leach]

@TastyLaksa Nope. Especially when increased fuel prices are destroying your associates' ability to perform your service profitably.

[GR Value]

@TastyLaksa I don't think it really makes sense to have a vast delivery service because both the pay is too low and the expenses are just too high. Eventually drones are going to have to replace this system in general.

[TastyLaksa]

@GR Value I think the service is great, but no company that does it will ever make money.