Deliveroo has received a takeover offer from US counterpart DoorDash, Inc which values the company at £2.9bn.
The board of Deliveroo has recommended that shareholders accept the deal for 180 pence per share in cash, which would give co-founder Will Shu a payday of more than £170m. It represents a 44% premium to Deliveroo’s share price.
To consider the deal independently, the London-based delivery app created a committee of board members minus Shu and Tom Stafford, due to their significant shareholding.
It unanimously backed the offer from the San Francisco firm. Shareholders will now vote on whether to accept it.
DoorDash is the largest food delivery app in the United States, with a presence in 25 countries. It had 42m monthly active users last year and made $10.7bn in revenue.
Deliveroo, meanwhile, averaged 7.1m active users in 2024 with £2.1bn in revenue. It has a current market cap of £2.2bn.
The firms have complementary geographic operations and the enlarged group will have a global presence in over 40 countries, serving approximately 50m monthly active users.
Deliveroo operates in the UK, Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates, all of which are new markets for DoorDash.
Shu, who founded the business with Greg Orlowski, 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.
“I want to thank all of our incredibly skilled people, dedicated riders and merchants and our loyal consumers for helping us to build the successful business we have today. I hope they share our excitement about what the future holds. I know that DoorDash will be a great long-term partner for our business.”
Tony Xu, CEO and co-founder of DoorDash, said: “Our mission at DoorDash is to grow and empower local economies. We started the company in 2013 to help people like my mom – people running local businesses and creating the vast majority of jobs and economic activity in our communities.
“Our focus ever since has been on building the best products and services to enable these merchants to grow, connecting them with consumers in their neighbourhoods, and creating a local commerce platform that offers uniquely flexible earnings opportunities.
“Coming together with teams that have similar visions and values accelerates our work to achieve that mission. Deliveroo is just such a team and one that I have long admired. 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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