U.S.-based delivery giant DoorDash has agreed to acquire British food delivery service Deliveroo in a landmark deal worth £2.9 billion. The transaction adds to a growing list of UK tech firms now under American ownership, further shifting the balance in the competitive global food delivery market.

The combined company will serve over 50 million monthly customers across 40 countries, marking one of the largest consolidations in the industry to date. This move is set to intensify competition with UK rivals Just Eat and Uber Eats, who currently dominate the local market.

A Premium Offer, But Below Past Valuations

Under the deal, Deliveroo shareholders will receive 180p per share, representing a 44% premium compared to the stock’s value before acquisition talks became public. However, the offer remains significantly lower than Deliveroo’s 2021 IPO price of 390p, a drop that has raised eyebrows among investors and analysts.

Despite the lower valuation, leaders from both companies highlight the strategic benefits. “This deal enhances our ability to lead in global online commerce,” said a spokesperson from DoorDash.

Will Shu: “A New Chapter Begins”

Deliveroo co-founder and CEO Will Shu called the acquisition a “turning point” for the company he launched in 2013. “I’m proud of what we’ve achieved as an independent company,” Shu stated. “This merger gives us the scale to build better technology, better products, and stronger experiences for our customers.”

Shu, who owns 6.4% of Deliveroo shares, is expected to earn around £172.4 million from the sale. The deal is subject to shareholder approval and regulatory review.

Deliveroo’s Rapid Growth, Modest Returns

Deliveroo has grown fast over the past decade, expanding to nine countries with a fleet of over 130,000 riders. It facilitates both restaurant and grocery deliveries via a mobile app and reported £2 billion in revenue in 2024.

DoorDash, launched in the same year as Deliveroo, has significantly outpaced its UK counterpart in scale and market value. It generated nearly £8 billion in global sales last year and operates in more than 30 countries. Its listing on the U.S. stock market has allowed it to attract more capital and expand more aggressively.

A Blow to the London Stock Exchange

The acquisition also raises concerns about the London Stock Exchange’s global competitiveness. Deliveroo is the latest in a string of UK-based companies shifting their listings or ownership to the U.S. Recent examples include:

• Arm Holdings, now listed in New York.
• Flutter Entertainment, owner of Paddy Power.
• Ashtead Group, a major equipment rental firm.

Investors and regulators alike are watching these departures closely. Danny Rimer, early investor in Deliveroo and partner at Index Ventures, has voiced regret over not choosing a U.S. listing from the start. “In hindsight, a different path may have produced better outcomes,” he remarked.

Strategic Shift for DoorDash

DoorDash’s move is seen as a strategic step to bolster its position in Europe. News of the acquisition first emerged last week, triggering a sharp rise in Deliveroo’s share price.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, described the acquisition as a direct challenge to rivals. “DoorDash is clearly aiming to squeeze Just Eat and ramp up pressure on Uber,” he said. Britzman believes the merger could reduce the UK market to a two-horse race between DoorDash and Uber Eats.

“The lack of a competing offer shows DoorDash is making a bold, forward-looking bet,” he added.

The deal is expected to close by the end of 2025, pending regulatory approval and a shareholder vote. If successful, it will reshape the landscape of UK food delivery, placing DoorDash in a powerful new position.

For Deliveroo, this could mark the end of its independent journey but the beginning of a broader international presence. As British tech firms continue to attract foreign buyers, questions will grow louder about how to retain innovation and investment at home.