Under the terms of the acquisition, each Deliveroo shareholder will be entitled to receive 180p in cash for each Deliveroo share held.
It represents an approximately 44% premium on the closing price of 125p per Deliveroo share on 4 April 2025 (the last business day prior to DoorDash’s offer letter to Deliveroo in respect of the acquisition)
The figure is a stark contrast to the 390p per share Deliveroo offered when it floated on the London Stock Exchange in March 2021, which valued the company at approximately £7.6bn.
Deliveroo revealed at the end of last month that it had received an indicative takeover proposal from DoorDash, which operates in over 30 countries including the US, Canada, Australia and New Zealand.
DoorDash and Deliveroo are described as having ‘complementary geographic operations’ with the latter successful at operating in cities and large urban centres, and the former demonstrating success across urban, suburban and rural areas.
Between them, DoorDash and Deliveroo will have a global presence in over 40 countries.
“We are now at the beginning of a transformative new chapter,” says Deliveroo CEO Will Shu, who founded the delivery aggregator in 2013 with Greg Orlowski.
“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.”
DoorDash, like Deliveroo, was founded in 2013 and is led by co-founder Tony Xu, who created the business with friends Andy Fang, Evan Moore and Stanley Tang while they were all Stanford University students.
“Our mission at DoorDash is to grow and empower local economies,” says Xu.
“We started the company in 2013 to help people like my mom – people running local businesses and creating the vast majority of jobs and economic activity in our communities.
“Our focus ever since has been on building the best products and services to enable these merchants to grow, connecting them with consumers in their neighbourhoods, and creating a local commerce platform that offers uniquely flexible earnings opportunities.
“Coming together with teams that have similar visions and values accelerates our work to achieve that mission.
“Deliveroo is just such a team and one that I have long admired.
“Like DoorDash, Deliveroo is obsessively focused on their customers – consumers, merchants, and riders. They work day in and day out to improve their consumer value proposition, bring new services to local businesses, and offer flexibility and support to riders.
“These efforts and attention to detail from Will and the team have had a tremendous positive impact in the communities where Deliveroo operates.”
Back in March, Deliveroo reported its first full year profit in its financial results for the year ended 31 December 2024.
Profit for the period was £3m, compared to a loss of £32m in 2023. Adjusted EBITDA rose 52% to £130m from £85m.