Deliveroo accepts £2.9B acquisition offer from US foodservice giant DoorDash

UK foodservice company Deliveroo will be acquired by US rival DoorDash for £2.9 billion (US$3.9 billion). Deliveroo has been publicly listed on the London stock market for the past four years, during which time its share price has struggled.

Deliveroo shareholders will receive 180 pence in cash per Deliveroo share.  

Will Shu, CEO and co-founder of Deliveroo, says: “We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organizations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders, and local communities.” 

It is not yet clear whether the Deliveroo brand name will continue to be used. 

Claudia Arney, chair of Deliveroo, says: “Deliveroo changed the face of food delivery in the UK and around the world. This offer will enable Deliveroo to build on its significant strategic and operational progress, strengthen its competitive advantage, invest further in innovation, and further enhance our proposition to stakeholders.”

“Both companies are highly complementary, whether in their geographic footprints or their missions, and I am confident that being part of the enlarged group will accelerate the realization of Deliveroo’s full potential.”

While Deliveroo runs food delivery operations in nine countries, it has faced strong competition from big players like Uber Eats. DoorDash, based in San Francisco. It also acquired Finnish delivery app Wolt for €7 billion (US$7.9 billion) in 2021. 

Deliveroo became publicly listed in the UK the same year, and its shares immediately crashed. The listing, the biggest to hit the stock market in ten years, was at the time branded the “worst IPO in London’s history.” 

Stock prices plummeted around 74% immediately after listing, wiping out around £2 billion (US$2.8 billion) from the company’s market capitalization.