US firm DoorDash agrees takeover of UK food delivery rival Deliveroo in £2.9 billion deal
6 May 2025, 07:38 | Updated: 6 May 2025, 08:01
US firm DoorDash has agreed a takeover of UK food delivery rival Deliveroo in a deal worth around £2.9 billion.
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The deal will see the British firm, Deliveroo, leave the London Stock Exchange.
The food delivery company deal valued Deliveroo shares at 180p each - 44 per cent more than the shares were worth before talks began.
The sale is expected to go through later this year if shareholders and regulators approve.
DoorDash is the biggest food delivery platform in the United States.
Deliveroo's shares rose by 17% after investors reacted to the takeover offer on 5 April.
DoorDash had until 23 May to provide Deliveroo with a formal offer, in accordance to City takeover rules.
It is believed the dead would net Will Shu, Deliveroo's founder, around £172 million from his 5.9% stake in the business.
In 2024, Mr Shu sold 9.4 million shares in his business, worth nearly £14.8 million.
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Mr Shu founded Deliveroo in 2013 alongside childhood friend Greg Orlowski.
He was inspired by looking for late-night food options while working as an investment banker.
In Deliveroo's early days, Mr Shu made food deliveries himself by scooter.
The firm's popularity soared during the Covid-19 pandemic, when lockdown halted indoor restaurant dining.
