Deliveroo Takeover and Expansion
Tuesday 06 May 2025 7:30 am
| Updated:
Tuesday 06 May 2025 12:12 pm
Introduction to Deliveroo Takeover
The board of Deliveroo has said it has “reached agreement” on the terms of a takeover offer by US rival DoorDash as it prepares to exit the London Stock Exchange.
The offer of 180p per share represents a premium of 44 per cent on Deliveroo’s closing share price on the day prior to the acquisition, and a 40 per cent premium on its average price for the prior three months. It values the company’s share capital at £2.9bn.
However, the offer remains well below Deliveroo’s 390p IPO price when it first floated on the London Stock Exchange in April 2021.
DoorDash, which itself floated in New York only a few months earlier, said the terms of its offer were “final” and “would not be increased”.
Global Delivery Giant
The takeover, the latest in a long line of US acquisitions of London-listed businesses, will see the combined group achieve a global presence in over 40 countries, serving approximately 50m monthly active users.
In 2024, the two companies together generated a total Gross Order Value of approximately $90bn.
Deliveroo CEO Will Shu, who co-founded the business in 2013, said: “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.
“The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition.”
Deliveroo chair Claudia Arney added: 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.”
The deal will be subject to shareholder approval at a forthcoming general meeting. Shu, who controls a 6.4 per cent stake in the company, would be in line for a £172m payday if the deal goes ahead.
SevenRooms Deal
DoorDash today also announced the acquisition of US-based hospitality software business SevenRooms in a $1.2bn deal.
“The move marks a significant expansion of DoorDash’s Commerce Platform capabilities, equipping merchants with new tools to grow in-store sales, build stronger customer relationships, and increase profitability,” DoorDash said.
The firm reported an 18 per cent increase in total orders to 732 million, while revenue rose 21 per cent to $3.0 billion.
Benefits of the Takeover
The takeover is expected to bring several benefits to both companies, including increased scale, improved technology, and enhanced consumer value proposition.
The combined group will have a strong presence in over 40 countries, serving approximately 50m monthly active users, and generating a total Gross Order Value of approximately $90bn.
The acquisition of SevenRooms will also provide DoorDash with new tools to grow in-store sales, build stronger customer relationships, and increase profitability.
Conclusion
In conclusion, the takeover of Deliveroo by DoorDash is a significant development in the food delivery market. The combined group will have a strong global presence, serving millions of customers and generating billions of dollars in revenue. The acquisition of SevenRooms will also provide DoorDash with new capabilities to grow its business and increase profitability. While the deal is subject to shareholder approval, it is expected to be completed soon, marking a new chapter in the history of Deliveroo and DoorDash.
Frequently Asked Questions
Q: What is the takeover offer for Deliveroo?
A: The takeover offer for Deliveroo is 180p per share, representing a premium of 44 per cent on Deliveroo’s closing share price on the day prior to the acquisition.
Q: How much is the takeover valued at?
A: The takeover is valued at £2.9bn.
Q: What is the significance of the SevenRooms deal?
A: The SevenRooms deal is a significant expansion of DoorDash’s Commerce Platform capabilities, equipping merchants with new tools to grow in-store sales, build stronger customer relationships, and increase profitability.
Q: What are the benefits of the takeover?
A: The takeover is expected to bring several benefits, including increased scale, improved technology, and enhanced consumer value proposition.
Q: When is the deal expected to be completed?
A: The deal is subject to shareholder approval and is expected to be completed soon.
