US-based food delivery platform DoorDash has confirmed it will acquire Deliveroo in a £2.9bn deal.
DoorDash has agreed to purchase Deliveroo for 180p per share in cash. The London-based food delivery company was founded in 2013 by William Shu and Greg Orlowski.
Deliveroo was valued at around £7.6 billion during its turbulent flotation on the London Stock Exchange in 2021—nearly three times the price agreed in the current deal.
Over the past 12 years, Deliveroo has grown its operations to nine countries, including Belgium, France, Italy, and the UAE—territories that will mark new ground for its North American acquirer, DoorDash.
DoorDash stated that the combined business will now operate in over 40 countries worldwide, with “complementary geographic footprints” enhancing their global reach.
They also noted that the merger would allow both companies to leverage their respective strengths — with Deliveroo excelling in major cities and urban hubs, while DoorDash has traditionally focused on a broader mix of urban, suburban, and rural markets.
The acquisition follows Deliveroo’s recent suspension of a £100m share buyback programme last month, shortly after the company reported its first-ever profit since launching in 2013.
Chief executive and co-founder of DoorDash, Tony Xu, 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… I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together.”
Shu, chief executive and co-founder of Deliveroo, added: “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.”
Claudia Arney, chair of Deliveroo, confirmed that the Deliveroo Independent Committee has unanimously agreed to recommend the offer to shareholders and stakeholders.
