Deliveroo has agreed to be acquired by US rival DoorDash in a deal valuing the UK-based food delivery company at £2.9 billion, the companies announced on Tuesday.

Under the terms of the acquisition, DoorDash will pay 180 pence in cash per Deliveroo share, representing a 44 per cent premium to Deliveroo's closing price on 4 April 2025, before takeover talks were made public.

The deal will create a combined entity with operations in more than 40 countries, serving approximately 50 million monthly active users and generating a total order value of approximately $90 billion in 2024.

Will Shu, chief executive officer and co-founder of Deliveroo, who stands to receive about £172 million for his 6.4 per cent stake, 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."

"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," he added.

Tony Xu, chief executive officer and co-founder of DoorDash, commented: "Our mission at DoorDash is to grow and empower local economies. I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together."

Deliveroo, founded in 2013, currently operates in nine countries with approximately 176,000 restaurant, grocery and retail partners, and more than 130,000 riders serving around 7 million monthly active consumers. The company reported revenues of approximately £2 billion in 2024.

DoorDash, also founded in 2013, has grown to become the largest food delivery service in the US, with operations in over 30 countries, serving more than 42 million monthly active users and partnering with over 500,000 local businesses.

The acquisition price represents a significant discount to Deliveroo's initial public offering price of 390 pence per share when it listed on the London Stock Exchange in 2021, which was followed by a 26 per cent share slump on its first day of trading.

Claudia Arney, chair of Deliveroo, said: "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders."

The deal, which is expected to close in the fourth quarter of 2025, subject to regulatory approvals and other conditions, marks another example of a UK-listed company being acquired by a US firm, raising further questions about London's appeal as a venue for growth companies.

Staff at Deliveroo are reportedly set to share a £65 million payout as part of the deal, which would create one of the world's largest local commerce platforms.

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