Deliveroo has agreed to a takeover offer from US-based food delivery app, DoorDash, valued at £2.9bn.

The deal represents a premium of 44% on Deliveroo’s closing share price of 125 pence on 4 April.

Deliveroo, which was founded in 2013, is headquartered in London and is listed on the FTSE 250. It operates in nine countries, including the UK, UAE and Singapore.

DoorDash works in 30 countries around the world and its shares are publicly listed on Nasdaq.

In a joint statement, the firms said they share a "strategic vision" and "complementary geographic footprints".

As a result, DoorDash said its "best-in-class capabilities" applied to Deliveroo’s geographies and growth initiatives can create "significant value" Deliveroo’s stakeholders.

Following the combination, the two firms would have a global presence in over 40 countries, serving over 50 million monthly active users.

In 2024, DoorDash and Deliveroo generated a collective gross order value of approximately $90bn.

Chief executive officer and co-founder at Deliveroo, Will Shu, said he was "very proud" of what the firm has done in its time as a standalone business.

He stated: "We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders and local communities. The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition."

Investment director at AJ Bell, Russ Mould, commented: "DoorDash has firmed up its intention to buy Deliveroo with a formal offer. The food delivery market has found it hard to grow at a rapid clip in recent years, leading to widespread consolidation.

"Arguably, there were too many companies chasing the same opportunity and that’s unsustainable. We’re now in the phase where only the strongest will survive and they’re the ones picking up smaller rivals who realise their future is best part of a bigger entity, not going it alone."

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