In a statement issued to the London Stock Exchange (LSE) on 6 May, Deliveroo announced that its board of directors had backed the offer from US player DoorDash which would entitle Deliveroo shareholders to 180p for each share held.
DoorDash, which is headquartered in San Francisco, is a leading food delivery service that now operates in 30 countries around the world.
The firm said that the combination with Deliveroo will strengthen its position as a global commerce platform, with the combined group serving approximately 50 million monthly active users.
The deal remains subject to approval from Deliveroo shareholders and regulatory approval, but is expected to close before the end of 2025.
DoorDash CEO and co-founder, Tony Xu, said that Deliveroo is a business he has long admired.
“I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together,” he continued.
“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.”
Will Shu, the CEO and co-founder of Deliveroo, added: “I’m very proud of everything we have achieved as a standalone business [but] 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.”
Meanwhile, Deliveroo chair Claudia Arney said that the offer was recommended to shareholders after careful consideration for their best interests.
“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,” Arney added.
“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.”
