Terms for the expected takeover of London-listed Deliveroo by US group DoorDash have been agreed, with the online food delivery company being valued at £2.4bn.
The boards of the two companies confirmed that the financial details of the proposed acquisition have been agreed and are now final.
Founded in 2012, Deliveroo has become one of the biggest names in the takeaway and grocery delivery, an industry that rose significantly in value during the covid-19 pandemic.
Deliveroo, which went public in 2021, has historically struggled to turn its millions of users into profit.
Founder and chief executive Will Shu has spent the years since the company’s London listing shifting its focus from growth at all costs to profit as venture capital’s appetite for rapid delivery dipped post-pandemic.
This mission for profit has seen layoffs and the exiting of international markets, however the company reported its first profitable year in March.
The firm has opted for an acquisition despite achieving profitability in its right, putting the company in the hands of its Silicon Valley counterpart, which is valued at more than $70bn.
The acquisition, according to Nick Shay, head of travel and hospitality at Publicis Sapient, is “yet another signal that the global tech landscape is rapidly consolidating around digital platforms that are nimble, scalable, and deeply embedded in consumer behaviour”.
Shay added: “DoorDash is not just buying market share; it’s acquiring a sophisticated technology stack, local market intelligence and AI-powered operational capabilities that would otherwise take years to replicate organically.”
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