DoorDash acquires Deliveroo for £2.9 billion

Published: 2025-05-07 00:01:10 ET DASH

Published on 05/07/2025 at 00:01

Key takeaways

DoorDash, a leading U.S. food delivery app, is acquiring Deliveroo for 2.9 billion pounds (=3.38 billion euros). This deal means a significant payout for Deliveroo's staff, who will receive 65 million pounds, and for co-founder Will Shu, who will earn 172 million pounds from his 6.4 percent stake in the company. Shu expressed enthusiasm for this new chapter, emphasizing the shared vision and values between DoorDash and Deliveroo. Founded in 2013 by Shu and Greg Orlowski, Deliveroo stemmed from a personal need to eat late into the evening during Shu's long working hours as an investment banker.

Deliveroo achieved its first pre-tax profit of £12 million on sales of £2.1 billion in 2024. The company's growth was spurred by the Covid-19 pandemic, which resulted in a spike in demand for meal delivery due to restaurant closures. However, this trend has since declined as the pandemic restrictions subsided.

"Flopperoo"

Deliveroo's 2021 IPO at 390 pounds per share initially suffered setbacks: shares plummeted 26 percent on the first day of trading, earning the company the nickname "flopperoo." Despite these challenges, Deliveroo has continued to grow and expand its services.

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