Deliveroo Gets Takeover Offer from US Rival DoorDash

DoorDash Acquires Deliveroo in Landmark Deal

£3bn Offer Signals Major Shake-Up in Food Delivery Sector

US-based delivery platform DoorDash has made a bold move to acquire UK rival Deliveroo in a near £3bn deal. The Doordash acquires Deliveroo bid has triggered speculation and market excitement, driving Deliveroo shares up by more than 17% in one day.

Deliveroo Board Considers DoorDash Proposal

Deliveroo confirmed it received an offer of 180p per share, valuing the company at £2.7bn. The board announced it would recommend the proposal if DoorDash submits a firm offer by 23 May.

Deliveroo’s chief executive Will Shu could earn a £172m payout if the acquisition closes. As a result, the company suspended its £100m Buyback programme to focus on this significant development.

What This Acquisition Means for the Industry

If finalized, the DoorDash acquires Deliveroo deal would reshape the grocery and food delivery market across the UK and Europe. Deliveroo currently partners with Sainsbury’s, Waitrose, and Morrisons, offering fast and flexible grocery delivery.

Recently, Deliveroo launched its Deliveroo Express solution, enabling UK and Irish retailers to integrate rapid delivery into their own online channels. This move expanded its grocery business, now contributing 16% of its total GTV.

Will Shareholders Accept the Offer?

Deliveroo advised shareholders not to take any action yet, stressing that there is no guarantee of a firm offer. The market, however, responded swiftly, with Deliveroo’s valuation surging after the announcement.

If the merger goes through, DoorDash would gain access to a larger customer base and cutting-edge delivery infrastructure in Europe. For Deliveroo, it would mean greater scale and resources to drive innovation.

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