Deliveroo Agrees to £2.9bn DoorDash Takeover – But at What Cost?
British food delivery firm Deliveroo has accepted a £2.9 billion acquisition offer from U.S. giant DoorDash, sparking concerns over industry monopolisation despite the windfalls it brings for insiders. Co-founder and CEO Will Shu, who will pocket a staggering £172 million from his 6.4% stake, called the deal "the beginning of a transformative new chapter," adding, “DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values.”
Deliveroo’s staff are also set to benefit, with a £65 million pool to be distributed among employees.
Founded in 2013 by Shu and Greg Orlowski, Deliveroo has grown into a major player in the UK’s delivery scene, partnering with over 176,000 restaurants, grocers, and retailers, and reaching 7 million active monthly users. The company reported its first annual pre-tax profit in 2024, with £12 million on revenues of £2.1 billion.
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But the takeover marks a dramatic fall in perceived value since its troubled 2021 IPO, which launched at 390p per share and saw prices plunge 26% on its first day of trading.
While the deal might seem like a win for Deliveroo shareholders and staff, it raises critical questions about market consolidation. DoorDash is already the dominant food delivery platform in the U.S., and its acquisition of Deliveroo tightens its grip on the global market. Fewer competitors could mean higher fees for restaurants, reduced options for consumers, and tougher conditions for riders.
As tech giants swallow their competitors one by one, the industry risks losing the very competition that fuels innovation and protects local interests. While this merger may promise strategic alignment, we should remain vigilant about the broader implications of concentrated corporate power.
A stronger balance sheet shouldn’t come at the cost of a weaker market.
