DoorDash has acquired Deliveroo for £2.9 billion, marking one of the biggest shifts in the global food delivery market. Announced on May 6, 2025, this deal strengthens the U.S. company’s position in Europe and raises major questions about the future of British tech firms on the London Stock Exchange.
DoorDash will pay 180 pence per share in cash—offering a 44% premium over Deliveroo’s share price on April 4, when the talks first surfaced. The valuation represents an enterprise worth of £2.4 billion, about 13.4 times Deliveroo’s forecasted 2025 EBITDA.
But this generous premium tells only part of the story. Deliveroo’s IPO price in March 2021 was 390p, putting its original value at £7.6 billion. That means the DoorDash Deliveroo acquisition is closing at less than half of Deliveroo’s IPO value, showing the steep decline in investor sentiment and market performance over the last four years.
A Deep Dive Into Deal Structure, Jobs, and Regulatory Risks
Deliveroo will keep its London headquarters and continue working with the GMB union. However, the merger could lead to up to 830 job cuts, mostly in back-office roles. Both companies say they will try to reduce redundancies.
Deliveroo’s CEO and co-founder, Will Shu, owns 6.4% of the company and is set to receive £172.4 million from the sale. He will remain involved post-merger, as the new group plans heavy investments in technology and global logistics to stay competitive.
The merger will likely face a detailed review from the UK’s Competition and Markets Authority (CMA). The watchdog has previously blocked investments in Deliveroo—like Amazon’s 2020 attempt—over antitrust concerns. Although DoorDash has little UK market share today, the DoorDash Deliveroo acquisition may still raise flags over reduced competition, especially in grocery delivery and gig worker rights.
Labour groups are already watching closely. In 2023, the UK Supreme Court ruled that Deliveroo riders aren’t classified as “workers.” This denied them collective bargaining rights. In contrast, Uber drivers won a 2021 ruling granting them worker status. DoorDash is testing employment-based courier models in the U.S., and applying those in the UK could reshape Deliveroo’s gig work model and influence future labour reform debates.
How the Merger Reshapes Global Food Delivery and UK Tech
The DoorDash-Deliveroo deal brings together two 2013-founded giants that took different paths. Deliveroo is active in nine countries across Europe and the Middle East. DoorDash serves over 30 countries globally, but has lagged in Europe.
The combined group will now operate in about 40 countries, serve 50 million monthly users, and process an estimated $90 billion (£67.7 billion) in annual order volume. This gives DoorDash a massive leg up in its European expansion, where it has trailed behind Uber Eats and Just Eat.
Deliveroo’s Editions network, which features delivery-only kitchens in cities like Leeds and Salford, is seen as a key asset. DoorDash has experience with ghost kitchens in the U.S. and may expand this model across the UK. While these kitchens offer efficiency and scalability, critics warn they could worsen working conditions and reduce transparency around food sources.
This deal also intensifies scrutiny of the London Stock Exchange. Since its IPO, Deliveroo’s stock has dropped 56%, while DoorDash shares have surged 84% on the New York Stock Exchange. This growing performance gap highlights why many UK tech founders are now favouring U.S. listings.
Early Deliveroo investor Danny Rimer recently stated he would choose a U.S. listing if given another chance. Many share his view, citing higher U.S. valuations and more tech-friendly regulations. Deliveroo’s sale below half its IPO value adds to a growing list of UK tech firms exiting the London market due to perceived weaknesses in investor appetite and listing rules.
In the UK, food delivery is a $48 billion industry, led by Just Eat (35% share), Uber Eats (29%), and Deliveroo (28%). Analysts now expect a fierce battle between DoorDash and Uber, with Just Eat possibly squeezed out. While competition may rise in the short term, many fear long-term dominance by just two players could harm choice, pricing, and restaurant margins.
As this DoorDash Deliveroo acquisition moves through approval stages, it promises to reshape not just the food delivery market but the UK’s tech and employment future.
