Deliveroo has agreed to a £2.9 billion takeover by US rival DoorDash who will pay 180p a share in cash for the food delivery giant.
Deliveroo and DoorDash said, “The combination with Deliveroo will strengthen DoorDash’s position as a leading global platform in local commerce, enabling the combined entity to better serve businesses, consumers and couriers.”
Chief executive Will Shu who co-founded Deliveroo is set to receive a £172 million from his 6.5% stake in the food delivery firm.
Shu 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.”
Chief executive Tony Xu who co-founded DoorDash said, “I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together.
“We’ll cover more than 40 countries with a combined population of more than one billion people, enabling us to provide more local businesses with the tools and technology they need to thrive.”
