Deliveroo set for £2.7bn acquisition by DoorDash
Deal News | Apr 28, 2025 | Business Cloud
Deliveroo, a London-headquartered delivery app company, is poised to be acquired by DoorDash, Inc., a major U.S.-based food delivery app provider. DoorDash has proposed a potential cash offer of 180 pence per share, valuing Deliveroo at £2.7 billion. As a result of this potential deal, Deliveroo's founder, Will Shu, could receive over £170 million. Following the indicative proposal, Deliveroo suspended its £100 million share buyback program. DoorDash, with significant reach in 25 countries and revenue of $10.7 billion last year, is conducting due diligence on Deliveroo, which had 7.1 million active users and £2.1 billion in revenue in the same period. Deliveroo's board, after consulting with its advisers, has expressed a preliminary inclination to recommend the offer to its shareholders, should the terms remain favorable.
Sectors
- Food Delivery
- Technology
- Retail
Geography
- United Kingdom – Deliveroo is headquartered in London, and part of the potential deal is announced through the London Stock Exchange.
- United States – DoorDash, the acquiring company, is based in San Francisco, with plans to expand its services potentially through this acquisition.
Industry
- Food Delivery – The primary focus of the article is the potential acquisition in the food delivery industry, involving major players Deliveroo and DoorDash.
- Technology – Both Deliveroo and DoorDash are technology-driven companies, using mobile applications and software to facilitate their services.
- Retail – The deal impacts the retail sector as it involves major food delivery platforms that serve millions of consumers.
Financials
- £2.7 billion – Proposed valuation of Deliveroo in the acquisition deal by DoorDash.
- 180 pence per share – The cash offer made by DoorDash for each share of Deliveroo.
- £170 million – The expected financial gain for Deliveroo's founder, Will Shu, from the acquisition.
- £100 million – The amount related to Deliveroo's suspended share buyback program.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Deliveroo | Target Company | Company | A London-based food delivery service receiving a buyout offer from DoorDash. |
| DoorDash, Inc. | Bidding Company | Company | The largest food delivery app in the U.S., proposing to acquire Deliveroo. |
| Will Shu | Founder | Person | The founder of Deliveroo, poised to gain significantly from the potential acquisition. |