DoorDash to acquire Deliveroo

Original Article ↗ Hacker News Discussion ↗

Foreign ownership, UK startups, and “European independence”

  • Many see Deliveroo’s sale as part of a pattern: UK startups either selling to foreign buyers, shutting down, moving to the US, or stagnating.
  • Others argue this is simply globalization and capital markets at work; UK firms also buy abroad, and London remains a major VC and tech hub (at least within Europe).
  • Some worry about strategic assets ending up in foreign hands; others say food delivery isn’t strategic enough to justify blocking.
  • There’s debate over “European independence” from US tech: some say Europe/EU/UK are doing little effective; others note the UK is politically aligned with the US and not pursuing independence.

Regulation, competition, and approval of the deal

  • Several comments stress that only competition and national-security reviews apply; there is no generic political veto on such sales.
  • For Deliveroo, people expect UK national-security rules and EU merger control to be formalities, since DoorDash/Wolt and Deliveroo don’t overlap heavily in many markets.
  • One view: if regulators block exits, they damage the startup ecosystem; if they allow them, ownership shifts to US giants—a structural dilemma.

DoorDash strategy and international positioning

  • DoorDash’s claim about serving “1 billion people in 40+ countries” is questioned: food delivery is hyper‑local, so global scale mostly helps with capital, tech, and brand, not routing.
  • Others point out there are global benefits: capturing travelers who stick with one app, shared infrastructure, and stronger bargaining power with restaurants and couriers.
  • The sale of Deliveroo’s Hong Kong arm to Foodpanda before the deal is seen as DoorDash avoiding China‑adjacent operational complexity and intense local competition.

Tipping, labor conditions, and auction economics

  • Large subthread on tipping: many expect DoorDash to push US‑style pre‑tipping into Deliveroo; Europeans are split between accepting in‑app tips and seeing them as culturally alien or exploitative.
  • Multiple reports that on US apps, low or no tip leads to very slow or failed deliveries; some describe this as a hidden “auction” where customers bid for driver attention.
  • Disagreement over ethics:
    • One side: tipping is necessary in the current system to avoid underpaying already exploited workers.
    • Other side: tipping hides the true cost, worsens working conditions, and should be replaced by regulated living wages baked into prices.
  • Several note that in some cities new rules now guarantee minimum pay for app-based couriers, weakening the case for routine tipping there.

Impact on restaurants, quality, and innovation

  • Many restaurateurs and customers complain about high platform commissions (often ~30%), deceptive fees, and dependence on a single platform as a long‑term risk.
  • Some argue any restaurant that makes itself dependent on delivery apps is making a fatal strategic mistake, yet acknowledge that in a cutthroat market short‑term gains often override long‑term risk.
  • People report: cold food, missing items, ghost kitchens, crowded entrances with riders, and worse in‑restaurant experience because kitchens are optimized for app orders.
  • Others say in dense European cities delivery can be fast and hot, especially with bikes/scooters and insulated bags; reliability seems highly location‑dependent.

Why people use (or reject) delivery apps

  • Critics: delivery massively inflates already high restaurant prices, degrades food quality, encourages “generic slop,” and is often inferior to basic home cooking or walking to nearby places.
  • Supporters: time is more valuable than the premium; they cite long workdays, childcare, illness, lack of a car, disability, bad weather, and the ability to “fire and forget” while doing other tasks.
  • Several describe using delivery as an occasional luxury or emergency fallback, not daily routine; others admit using it multiple times a week, especially high‑income tech workers in major cities.

Market concentration, capitalism, and M&A

  • Some frame the acquisition as classic monopoly‑building: big US players buying competitors with investor money rather than winning purely on product quality.
  • Others push back that consolidation via mergers and acquisitions is how capitalism has always functioned; this deal alone doesn’t prove “capitalism is dying.”
  • Concern is raised that DoorDash already owns Wolt; adding Deliveroo further concentrates market power and may squeeze both restaurants and riders.

Alternative models and systemic critiques

  • Several contrast app delivery with Singapore‑style hawker centres or workplace canteens: cheap, walkable, social, and low‑waste, but dependent on specific urban design, labor markets, and policy.
  • Some call for delivery platforms to move down to the “transport layer” only, leaving room for better restaurant‑centric or community‑oriented apps; others doubt such differentiation is viable once price competition dominates.