DoorDash said on Tuesday it has agreed to buy its U.K. rival Deliveroo for about £2.9 billion (around $3.29 billion), as the U.S. food delivery company seeks to expand into new markets.

DoorDash will pay Deliveroo shareholders 180 pence per share, which represents a premium of 44% over the latter’s share price on 4 April, when the U.S. firm approached with its acquisition offer, the companies said.

The deal would give DoorDash access to nine new markets in Europe, where Deliveroo operates in primarily. The companies are betting their combined scale would also help them compete better with rivals such as Just Eat Takeaway and Uber Eats.

DoorDash said it would operate in 40 countries and serve a total of 50 million monthly active users once the acquisition closes.

Founded in 2013, Deliveroo went public in 2021, when the grocery and food delivery sector was riding high on post-pandemic tailwinds — people were still trying to stay home, work remotely, and so were ordering takeout more than they would have otherwise. Food and grocery delivery startups were being founded in droves and attracting piles of venture capital.

But as COVID fears faded and people returned to shopping in-person and going out to restaurants and cafes, food and grocery delivery startups suddenly found themselves struggling to adjust to rapidly changing consumer behavior in a suddenly crowded space. It didn’t help that capital started growing scarce in 2022 as interest rates rose and venture investors held on to their checks as they sought more profitable investments.

Since its listing, Deliveroo’s shares had declined more than 50% until April 4. This March, the company sold its Hong Kong business to Delivery Hero, citing intense competition. It had also exited Australia in 2022, where it faced similar competition pressures.

Deliveroo reported revenue of about £2 billion and gross transaction value of £7.1 billion in the year ended December 2024.