Deliveroo agrees £2.9 billion takeover from US rival DoorDash
The 180p a share offer from the San Francisco based company has been recommended by a committee of the board of Deliveroo, which is best known for its fleets of blue liveried riders.
The committee does not include its CEO and co-founder Will Shu and non executive director Tom Stafford “recognising the significant shareholding of Will Shu and Tom Stafford's association with a significant shareholder of Deliveroo.”
Shu’s 5.9% holding is worth around £172 million if the deal goes through at the agreed price.
The 180p offer represents a 29% premium to the 140p closing price the day before the approach was confirmed late last month.
DoorDash said that the financial terms of the acquisition were final and would not be increased unless a third party steps in with a rival bid.
London based Deliveroo was founded in 2013 by Will Shu and his childhood friend Greg Orlowski.
It served around 7 million monthly active consumers in 2024. It now operates across 9 countries: Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates as well as the UK.
Shu is a former investment banker who was inspired to set up the business by the lack of late-night food options while working long hours. He personally made deliveries by scooter for the service in its early months.
A London share listing in 2021, at 390p a share was widely regarded as a flop when the price fell heavily on the first day of trading.
DoorDash is the largest food delivery app in the United States, with 42 million monthly active users in 2024 and $10.7 billion in revenue in 2024. It was founded in 2012 and has a presence in more than 30 countries. It is valued at more than $90 billion.
The combined group will have a global presence in over 40 countries, with a combined population of more than 1 billion people, serving approximately 50 million monthly active users. In 2024, the two companies together generated a total gross order value of around $90 billion.
Tony Xu, CEO and Co-founder of DoorDash, said: Like DoorDash, Deliveroo is obsessively focused on their customers - consumers, merchants, and riders. They work day in and day out to improve their consumer value proposition, bring new services to local businesses, and offer flexibility and support to riders. These efforts and attention to detail from Will and the team have had a tremendous positive impact in the communities where Deliveroo operates.
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Will Shu said: "When Greg and I founded this business in 2013, we made it our mission to bring the best of our consumers' neighbourhoods to their door. We've stayed relentlessly focused on this mission for the past twelve years, keeping our consumers at the heart of everything we do and aiming to deliver them flawless experiences, new innovations and real value. I'm very proud of everything we have achieved as a standalone business.
“We are now at the beginning of a transformative new chapter. 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 enlarged group will have the scale to invest in product, technology and the overall consumer value proposition."
Claudia Arney, chair of Deliveroo, said: "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders.”