U.S. delivery firm, DoorDash, is set to acquire UK rival, Deliveroo, in a £2.9billion deal, expanding its combined reach to 40 countries and over a billion consumers as it seeks to build the leading global delivery platform for local commerce.

Last year, the two companies generated a combined total Gross Order Value of approximately $90billion, and, with complementary geographic operations, the acquisition will bring together approximately 50million monthly active users across both their customer bases.

Deliveroo currently operates in nine countries, all of which are new for DoorDash, supporting growth in new markets. And while Deliveroo has focused on rapid fulfilment in city-centre and large urban locales, DoorDash has a footprint across urban, suburban and rural areas.

The move will combine DoorDash’s “strong operating playbook” with Deliveroo’s local expertise, allowing it to “invest in innovation and execution at an even higher level”, Tony Xu, CEO and Co-Founder of DoorDash, explained, as it seeks to “grow and empower local economies.”

“Like DoorDash, Deliveroo is obsessively focused on its customers – consumers, merchants, and riders. It works day in, day out to improve its consumer value proposition, bring new services to local businesses, and offer flexibility and support to riders.”

Tony Xu, CEO & Co-Founder, DoorDash

“We are now at the beginning of a transformative new chapter,” Will Shu, CEO and Co-Founder of Deliveroo, commented. “DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders and local communities.”

The acquisition will give the combined delivery firm the scale to invest in its product, technology and overall consumer value proposition, Shu added.

Last month, Deliveroo launched new virtual storefronts on its platform, with Maplin and Ann Summers among the first brands to go live. Its new dedicated digital storefronts allow retailers to create personalised and brand-rich shopping journeys within the Deliveroo app, while benefiting from on-demand, rapid deliveries via Deliveroo HOP.