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The food giant DoorDash is set to purchase Deliveroo for £2.9 billion. The two companies together will be operating in over 40 countries and serving 50 million customers each month.
The UK’s Deliveroo is to be purchased by the US food company DoorDash. The new deal is valued at $2.9 billion USD.
The joint customer base of both brands will reach over 50 million customers in over 40 countries, though experts are concerned that this move is a continuation of a long-standing trend whereby UK-listed companies are obtained by larger corporations across the pond.
This could potentially harm investment in the UK and reduce overall market value.
As the BBC reports in its coverage, DoorDash has offered Deliveroo 180p per share, a 44% increase in the company’s share price compared to last month.
While this might sound like a great deal, it is a significantly smaller sum than the 390p share price that Deliveroo enjoyed on the London Stock Exchange in April 2021. This was when the company first went public.
The takeover has yet to come into full effect and still needs final approval from shareholders. Will Shu, the chief executive and co-founder of the company, will receive approximately £172.4 million for his 6.4% stake.
Deliveroo was founded in 2013 and currently operates in nine countries. DoorDash was also launched that same year but has grown to be a much more successful and US-centric business.
Apps that connect restaurants and food businesses with delivery drivers have surged in popularity over the last decade, particularly with Gen Zers. The pandemic also helped these services to grow exponentially, with the food delivery market doubling during the height of Covid-19 and lockdowns in the US.
They’re also playing a big part in the emergence of the gig economy. Services like Uber, Deliveroo and Vinted encourage people to make money on a self-employed or freelance basis, with greater flexibility than a traditional job.
Working your own hours can have its advantages and is attractive to Gen Z employees especially.
