London: UK-based food delivery firm Deliveroo has agreed to be taken over by US giant DoorDash, in a move set to mark a major shift in the company’s journey and leadership structure, while also offering significant rewards to its staff and executives.
The deal valued at £2.9 billion ($3.6 billion) includes a £172 million ($215 million) payout for Deliveroo’s co-founder and CEO Will Shu, based on his 6.4 percent stake in the company. and a £65 million ($81 million) share bonus for Deliveroo staff.
The company’s board recommended the offer, priced at 180p per share to shareholders after receiving it last month. The acquisition values Deliveroo at significantly less than its 2021 IPO price of 390p, when its market debut was marred by a 26 percent drop on the first day of trading, earning it the nickname ‘flopperoo.’
Founded in 2013 by former investment banker Will Shu and his childhood friend Greg Orlowski, Deliveroo was born out of Shu’s frustration over the lack of late-night food options during his long working hours. In its early days, Shu personally delivered food orders by scooter.
Shu described the deal as the beginning of a ‘transformative new chapter,’ noting that Deliveroo and DoorDash share a strategic vision and aligned values. DoorDash is currently the largest food delivery app in the US.
Deliveroo operates with 176,000 restaurants, grocers, and retailers and had over 130,000 riders serving 7 million active users per month as of last year. In 2024, the company posted its first annual pre-tax profit of £12 million ($15 million), with revenues reaching £2.1 billion ($2.6 billion).
Although the firm thrived during the COVID-19 pandemic, when lockdowns fuelled a surge in food deliveries, demand has cooled since restrictions were lifted.
The takeover, if approved, marks a significant shift in Deliveroo’s trajectory, from a pandemic-era growth engine to a new chapter under US ownership.
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