Deliveroo recommends £2.9bn DoorDash takeover – Daily Business

Meals delivery company Deliveroo has agreed to a £2.9 billion takeover by the US company DoorDash that will see a multi-million pound payout for its CEO and co-founder Will Shu.

Deliveroo shareholders will receive 180p in cash for each share, representing a 44% premium to the closing price of 125p on 4 April, the last business day prior to DoorDash going public with an open letter.

Mr Shu, who will receive more the £170m for his 5.9% stake, said the deal puts Deliveroo at the beginning of a “transformative new chapter”.

The terms of the acquisition imply an EV / EBITDA multiple of approximately 13.4x based on the mid-point of Deliveroo’s full year 2025 adjusted EBITDA guidance range which remains £170-190 million. It will be implemented by way of a court-sanctioned scheme of arrangement.

DoorDash operates in more than 30 countries, partners with over 500,000 local businesses on its marketplaces and serves over 42 million monthly active users.

Deliveroo has partnered with approximately 176,000 businesses, innovating in new categories such as grocery and retail, in addition to its core restaurant proposition and investing in operational excellence, It has approximately seven million monthly active consumers.

The enlarged group will have a presence in more than 40 countries, serving approximately 50 million monthly active users. In 2024, the two companies together generated a total gross order value of approximately $90 billion.

Mr Shu said: “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 12 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.

“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.”

Claudia Arney, chair of Deliveroo, said: “Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders.

“Deliveroo changed the face of food delivery in the UK and around the world. Thanks to Will and the dedication and innovation of the team, consumers have new food experiences, merchants new opportunities for growth and riders a new type of work. I’m immensely proud to have worked alongside the team and thank them for their hard work.

“Looking ahead, this offer will enable Deliveroo to build on its significant strategic and operational progress, to strengthen its competitive advantage, to invest further in innovation and further enhance our proposition to stakeholders. We are pleased that DoorDash is excited to invest into the business and team and shares our commitments to supporting the interests of riders, merchants and consumers.

“Both companies are highly complementary, whether in their geographic footprints or their missions, and I am confident that being part of the Enlarged Group will accelerate the realisation of Deliveroo’s full potential.”

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.”