Michelle ThompsonDeliveroo, the UK-based food delivery platform, has agreed to a £2.9 billion takeover by US firm DoorDash.
The merged group will operate in over 40 countries and cater to around 50 million customers monthly. This consolidation is expected to intensify competition with major UK players Just Eat and Uber Eats.
The acquisition highlights a growing trend of UK-listed firms being bought by American companies, raising concerns about domestic investment. DoorDash is offering 180p per share for Deliveroo—44% above its price when talks surfaced last month, but significantly below its 390p debut price on the London Stock Exchange in April 2021.
Both companies said the merger would reinforce DoorDash’s role as a global leader in local commerce. Deliveroo CEO and co-founder Will Shu described the deal as “transformative” and said the expanded business will have greater capacity to enhance its technology, product offerings, and value to consumers. Shu is expected to earn roughly £172.4 million for his 6.4% shareholding.
Founded in 2013, Deliveroo operates in nine countries with a fleet of 130,000 riders, delivering food and groceries. In 2024, it reported sales of approximately £2 billion, while DoorDash posted around £8 billion in revenue across more than 30 countries. Although both began as food delivery services, DoorDash has significantly outpaced Deliveroo in scale and market value since going public in the US.
Deal will ‘rattle Uber’
The acquisition of Deliveroo by DoorDash further intensifies concerns surrounding the future of the London Stock Exchange, which has seen another major UK-listed firm shift to US ownership.
Over recent years, a wave of high-value British firms—such as chip designer Arm Holdings, which now trades in New York, as well as Flutter and Ashtead—have either left or bypassed London in favor of US markets. This trend has sparked debate over the UK’s appeal to investors.
Danny Rimer of Index Ventures, an early Deliveroo investor, previously remarked that in hindsight, a US listing would have been his preference.
The news of the takeover talks drove up Deliveroo’s share price shortly after it emerged just over a week ago.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, noted that DoorDash is positioning itself to aggressively challenge UK competitors like Just Eat and unsettle Uber Eats. He suggested that once finalized, likely later this year, the deal could reshape the UK food delivery sector into a tight battle between DoorDash and Uber.
He described the move as a bold and strategic play aimed at surpassing global competitors quickly.
