Tue, 06 May 2025

Tue, 06 May 2025 UK's Deliveroo to be bought by US firm DoorDash in £2.9bn deal

The deal is the latest example of a UK-listed company being taken over by a US rival.
DoorDash, a US-based food delivery giant, has agreed to acquire UK-based Deliveroo in a £2.9 billion deal. The merged company will operate in over 40 countries and serve approximately 50 million customers per month. DoorDash's takeover of Deliveroo is expected to intensify competition with rival companies Just Eat and Uber Eats in the UK market. As part of the agreement, DoorDash has offered 180p per Deliveroo share, representing a 44% increase from when the acquisition talks were made public last month. However, this offer is below Deliveroo's initial share price when it listed on the London Stock Exchange in April 2021. The deal aims to create a leading global platform in local commerce by combining DoorDash and Deliveroo's expertise and resources. Will Shu, Deliveroo's CEO and co-founder, expressed his pride over the company's achievements as an independent entity but called the partnership with DoorDash "transformative." Shu is set to receive approximately £172.4 million for his 6.4% stake in Deliveroo following the takeover. The combined companies have generated significant revenue, with Deliveroo making sales of around £2 billion in 2024 and DoorDash achieving over £8 billion last year. The acquisition has raised concerns about the attractiveness of the UK market for investment, given that several prominent UK-listed firms have shifted their listings to US-based exchanges.
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