Shares in British food delivery company Deliveroo soared on Monday, reaching their highest level in over three years, after the company confirmed it had received a takeover approach from US delivery giant DoorDash.
Deliveroo disclosed in an announcement after market close on Friday that it had received an indicative proposal from DoorDash on 5 April, offering 180 pence per share in cash. The offer values Deliveroo at approximately £2.7 billion (US$3.6 billion).
Following the disclosure, Deliveroo shares climbed 16.51% to close at 170.80 pence on Monday, the stock’s highest closing price since January 2022.
Deliveroo board signals support for potential offer
In its formal announcement, Deliveroo said its board had “carefully considered” the approach with advisers and indicated it would be “minded to recommend” the offer to shareholders if a firm proposal is made on the terms outlined. Discussions are ongoing, with DoorDash granted access to due diligence.
Under UK takeover rules, DoorDash now has until 5pm London time on 23 May to either make a formal offer or announce it will not proceed.
Deliveroo cautioned there is “no certainty” that any firm offer will ultimately be made, and advised shareholders to take no action at this stage.
As a result of the approach, Deliveroo suspended the £100 million share buyback programme it had announced on 18 March 2025.
Founder Will Shu in line for major windfall
A deal would see Deliveroo’s founder and CEO, Will Shu, secure a significant payout. Shu holds approximately 5.9% of Deliveroo’s shares and could receive around £172 million if the sale proceeds.
Shu, a former investment banker, founded Deliveroo in 2013 and personally made deliveries by scooter in its early days. Deliveroo’s popularity surged during the pandemic, but its 2021 London IPO proved rocky, with shares falling sharply on debut and struggling to regain ground until now.
Recent profitability and competitive pressures
Deliveroo recently reported its first annual pre-tax profit, recording £12.2 million for 2024, compared with a £10.9 million loss the year prior. Revenue reached £2.07 billion.
However, the company continues to face stiff competition in its core markets—including from Uber Eats and Just Eat—and ongoing scrutiny over worker rights in its gig-economy model.
Deliveroo exited its Hong Kong operations earlier this year amid weak sales, and has diversified into grocery and non-food deliveries such as flowers and stationery to bolster growth.
Analysts suggest Deliveroo’s stabilisation into profitability may have made it a more attractive acquisition target. However, the prospective sale has been described as “unappetising” for the UK government, which has sought to retain and promote more major technology companies on the London Stock Exchange.
Broader industry consolidation
A successful bid would continue a wave of consolidation in the food delivery sector. DoorDash acquired Finland’s Wolt in 2021, while Dutch investor Prosus recently agreed to acquire Just Eat Takeaway.com for €4.1 billion.
Analysts at Citi said they do not anticipate significant regulatory hurdles for a DoorDash–Deliveroo tie-up, given the companies’ minimal geographic overlap.
Speculation remains that other suitors, including Amazon—which already holds around 14% of Deliveroo—could emerge before the 23 May deadline.