DoorDash has proposed an acquisition of its UK competitor, Deliveroo, for $3.6 billion (£2.7 billion), as announced by Deliveroo on Friday.

Deliveroo reported that its board is currently engaged in discussions with DoorDash regarding the proposal, indicating that a concrete offer has yet to be presented. Should DoorDash submit a definitive bid of £1.80 ($2.40) per share, Deliveroo noted that it would likely recommend this offer to its shareholders.

The company cautioned that there is no guarantee a formal offer will be made for Deliveroo and advised shareholders to refrain from taking any action concerning the potential offer.

According to Reuters, Deliveroo has allowed DoorDash until May 23 to present a solid bid.

As it stands, DoorDash is the leading food delivery platform in the United States, boasting 42 million active monthly users and generating $10.7 billion in revenue in 2024. Established in 2012 and headquartered in San Francisco, the company operates in over 25 countries.

In 2021, DoorDash acquired the Finnish delivery service Wolt for €7 billion, equivalent to $8.1 billion at the time, through a stock transaction.

Founded in 2013 and headquartered in London, Deliveroo ranks as the second largest food delivery service in the UK. The company reported an average of 7.1 million active users and £2.07 billion in revenue for 2024.

Both companies have been working to broaden their customer reach by venturing into grocery delivery and expanding into other non-food areas.

In an interview with Fortune in February, DoorDash CEO Tony Xu remarked that the company’s current footprint feels insignificant, describing it as “a speck of dust.”

“We’re really just tackling a few challenges with our first-party delivery and ordering systems,” Xu stated. “To truly establish ourselves as a digital force, more comprehensive solutions will be necessary.”