US firm DoorDash to acquire UK’s Deliveroo in £2.9bn takeover deal.

Deliveroo, the UK-based food delivery app, has agreed to a £2.9 billion takeover by United States Sdelivery giant DoorDash. The deal will create a global powerhouse in the on-demand delivery industry, with operations spanning more than 40 countries and serving approximately 50 million customers every month.

The acquisition marks a significant move for San Francisco-based DoorDash as it strengthens its presence in the United Kingdom and intensifies competition with major players like Just Eat and Uber Eats. For Deliveroo, the deal represents a transformative moment in its business journey, giving it access to greater resources and technological capabilities.

Under the terms of the agreement, DoorDash will pay 180p per share for Deliveroo, representing a 44% premium on the UK company’s share price before takeover talks were disclosed last month. However, that offer is still considerably below the 390p per share price Deliveroo achieved at its initial public offering on the London Stock Exchange in April 2021. In a joint statement, the companies said the merger would “strengthen DoorDash’s position as a leading global platform in local commerce.” Both firms started as food delivery services in 2013 and have since expanded their operations to include grocery and convenience delivery.

Deliveroo co-founder and CEO Will Shu expressed pride in what the company has accomplished independently, but acknowledged that joining forces with DoorDash will be a game-changer. “This deal is transformative,” Shu said. “The enlarged group will have the scale to invest more heavily in product, technology, and the overall consumer value proposition.”

Shareholders still need to approve the takeover, but the deal is expected to be finalized later this year. Shu, who owns a 6.4% stake in Deliveroo, stands to receive approximately £172.4 million from the sale.Founded in London in 2013, Deliveroo currently operates in nine countries and works with over 130,000 riders. The company offers customers food delivery from a wide variety of restaurants through its mobile app and website and has more recently expanded into grocery delivery. In 2024, Deliveroo generated around £2 billion in sales.

DoorDash, which also launched in 2013, has grown into a much larger company, with revenues of around £8 billion in 2024 and operations in over 30 countries. Unlike Deliveroo, which listed in the UK, DoorDash went public in the US, where investor appetite for tech and growth-focused firms has historically been stronger.The deal is the latest in a growing trend of UK-listed companies being acquired by US firms, raising fresh concerns about the competitiveness and appeal of the UK’s capital markets. It follows the departures of several major firms from the London Stock Exchange, including Arm Holdings, which opted to list in New York, along with Flutter Entertainment and equipment rental giant Ashtead.

The deal marks the latest example in a rising wave of UK-listed companies being snapped up by U.S. firms.

Some investors have suggested that Deliveroo may have fared better with a US listing. Danny Rimer of Index Ventures, one of Deliveroo’s early backers, previously said he would have supported a US IPO if given the chance again.Rumors of a possible deal between Deliveroo and DoorDash emerged just over a week ago, pushing Deliveroo’s share price significantly higher. Now, with the agreement confirmed, industry analysts are considering how the merger will reshape the UK’s food delivery landscape.

Matt Britzman, a senior equity analyst at Hargreaves Lansdown, noted that DoorDash’s move could “squeeze out” competitors such as Just Eat and create a tight battle with Uber. “The deal, expected to close later this year, could turn the UK market into a fierce two-horse race with DoorDash and Uber at the top,” he said.“With no competing bid in sight, this looks like a bold, calculated move to outpace global rivals and gain ground fast.”As the deal proceeds toward shareholder approval, the future of food delivery in the UK appears set for a significant shake-up, with DoorDash poised to become a dominant force in one of Europe’s most competitive markets.