Deliveroo’s share price has surged by 17% today following a takeover offer from US food delivery giant DoorDash.
Deliveroo confirmed on Friday it had received an indicative proposal from DoorDash, and was engaging with the company regarding the offer.
The £2.7bn proposed acquisition is not a done deal, however, with Deliveroo noting that “there can be no certainty that any firm offer for Deliveroo will be made”.
As per takeover rules, DoorDash has until 5pm on 23 May to provide Deliveroo with a firm offer.
Last month, Deliveroo CEO Will Shu quashed reports he could be stepping down from the role.
“I’m not. You’re hearing it from me,” he told The Grocer. “I’m running this company. I’m excited about it. You’ve heard all the cool stuff we’re doing. That’s what’s ultimately motivating to me.”
In the company’s full-year results in March, Deliveroo revealed it achieved its first-ever annual profit last year and was expecting more growth despite an uncertain consumer environment.
The listed company recorded a profit of £2.9m, compared with a loss of £31.8m the previous year. Its gross transaction value (GTV) was up 6% to £7.4bn, and up 7% in the UK. Deliveroo also said it had enjoyed a return to order growth of 2%.
Non-takeaway food has been a major driver of that growth. Grocery now accounts for 16% of the company’s global GTV. Deliveroo has also doubled the number of non-food retail sites trading on the Deliveroo platform.
The proposed acquisition by DoorDash 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” said Nick Shay, group vice president, head of travel & hospitality international at Publicis Sapient.
“From a digital transformation perspective, this deal reflects how technology-first companies are winning the future by owning the customer journey end to end. DoorDash isn’t 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,” Shay added.
In recent months, there had been growing speculation that Deliveroo would attract a takeover offer from an international suitor. In February, Deliveroo rival Just Eat Takeaway agreed to a €4.1bn acquisition offer from Dutch investment group Prosus. Bernstein analysts consider that Deliveroo’s “smaller scale means it is unlikely to be a consolidator of the space but more likely being consolidated”.
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