Deliveroo to be acquired by US rival DoorDash in £2.9bn deal
The new combined company will operate in over 40 countries with a combined population exceeding 1 billion people with annual orders of over £10bn
Deliveroo has announced it has agreed to a £2.9bn takeover deal from US delivery platform rival Doordash.
The delivery giants said the deal will help improve Deliveroo’s market share while the “complementary geographic regions” will see Doordash enter nine new countries for the first time, including the UK.
The news comes after the offer of 180p per share – which marks a 44% increase on the UK company’s share price from the point when takeover talks were made public – made last Tuesday (29 April) was recommended by Deliveroo’s board to shareholders.
Doordash currently operates in over 30 countries and partners with over 500,000 local businesses on its marketplaces and serves over 42 million monthly active users.
The new combined company will operate in over 40 countries with a combined population exceeding 1 billion people with annual orders of over £10bn.
Tony Xu, CEO and Co-founder of DoorDash, said: “I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together. We’ll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive.
“The Enlarged Group will bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise to invest in innovation and execution at an even higher level. Together, we will work to deliver the best experience for all of our stakeholders, to grow the GDP of cities around the world, and to build the leading global platform for local commerce.”
Deliveroo CEO and co-founder Will Shu added: “When Greg and I founded this business in 2013, we made it our mission to bring the best of our consumers’ neighbourhoods to their door. We’ve stayed relentlessly focused on this mission for the past twelve years, keeping our consumers at the heart of everything we do and aiming to deliver them flawless experiences, new innovations and real value. I’m very proud of everything we have achieved as a standalone business.
“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.”
He concluded: “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.”
Upon completion of the acquisition, DoorDash said it will initiate a detailed six-12 month review of the operations of Deliveroo across the geographies in which it operates to assess how Deliveroo’s business, platform offerings and technologies can be integrated with DoorDash’s business most “effectively and efficiently”.
