British meal delivery company Deliveroo said on Friday (April 25) it received a proposal from U.S. peer DoorDash on April 5 to buy all of its shares for £2.7 billion.
Deliveroo announced that its board has reviewed DoorDash's proposal of 180 pence per share and would likely recommend it to shareholders, contingent upon agreeing on the other terms of the offer.
Should a firm offer of £1.80 a share be made, Deliveroo said, “it would be minded to recommend such an offer to Deliveroo shareholders.
“There can be no certainty that any firm offer for Deliveroo will be made. At this time, shareholders are advised to take no action in respect to the possible offer,” the company said in a statement.
The company gave DoorDash until May 23 to give a firm offer, according to Reuters. JPMorgan is advising Doordash, according to a source familiar with the matter.
DoorDash is currently the largest food delivery app in the United States, with 42 million monthly active users in 2024. The San Francisco-based company was founded in 2012 and has a presence in more than 25 countries.
In 2021, DoorDash acquired the Finnish delivery company Wolt for €7bn, or what was $8.1bn at the time, in stock.
Deliveroo, which is based in London, was founded in 2013 and is the second largest food delivery app in the UK. The company said that it averaged 7.1 million active users in 2024 with £2.07bn in revenue.
Both DoorDash and Deliveroo have, in recent years, tried to expand their user base by getting into grocery deliveries and making non-food deliveries.
In March, Deliveroo announced its exit from Hong Kong, selling some assets to Delivery Hero's foodpanda. The Hong Kong operations were loss-making and represented about 5% of the company's overall transactions.
