In a £2.9 billion deal, the UK’s Deliveroo is set to be acquired by the US firm DoorDash. The acquisition will create a combined company with a presence in over 40 countries, catering to approximately 50 million customers monthly. This move is anticipated to bring strong competition to competitors Just Eat and Uber Eats within the UK.
This acquisition marks the latest instance of a US company taking over a UK-listed firm, raising concerns about UK investment. DoorDash has proposed 180p per Deliveroo share, representing a 44% increase from when takeover discussions were initially disclosed. However, this offer is significantly lower than Deliveroo’s initial share price of 390p when it debuted on the London Stock Exchange in April 2021.
“The combination with Deliveroo will strengthen DoorDash’s position as a leading global platform in local commerce,” stated both companies. Deliveroo’s CEO and co-founder, Will Shu, expressed pride in the standalone accomplishments of the business but emphasized the transformative nature of the partnership with DoorDash, based in San Francisco. The enlarged entity aims to enhance investments in product, technology, and consumer value propositions.
The future of the acquisition lies in the hands of shareholders for final approval. Will Shu, who holds a 6.4% stake in Deliveroo, is projected to receive approximately £172.4 million. Founded by Shu in 2013, Deliveroo operates in nine countries with a network of over 130,000 delivery riders, offering food and grocery delivery services through a mobile app. In contrast, DoorDash, established in 2023, generated around £8 billion in the previous year across 30+ countries. Both companies began as food delivery providers, yet DoorDash has expanded into a more comprehensive enterprise
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