Latest news with #ClaudiaArney
Yahoo
07-05-2025
- Business
- Yahoo
DoorDash to acquire Deliveroo for $3.9B
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: DoorDash has agreed to acquire Deliveroo for 180 pence in cash per share, equating to roughly £2.9 billion or about $3.9 billion with today's exchange rates, the company said in a Tuesday press release. The companies previously disclosed a similar tentative deal in late April. The transaction has been approved by both boards and is expected to close during the fourth quarter, according to an earnings release. The companies will continue to act independently until the deal closes. DoorDash will now have access to the nine countries Deliveroo operates in — including the United Kingdom, where Deliveroo controls nearly one-third of the market share. In total, Doordash will now extend into over 40 countries serving 50 million monthly active users. Dive Insight: This deal will make DoorDash an international delivery powerhouse. Last year, DoorDash and Deliveroo had a combined gross order value of about $90 billion. Comparatively, Uber had about $75 billion in gross bookings in 2024. This acquisition is the largest purchase DoorDash has made since its $8 billion buyout of Wolt in 2021, which extended it into Europe. The Wolt buy gave DoorDash access to the Nordic region as well as Central and Eastern Europe. Deliveroo will bring it into Belgium, France, Italy and Ireland as well as four countries in the Middle East. DoorDash and Deliveroo have complementary strengths, as well. Deliveroo has seen success in cities and large urban centers, where DoorDash has done well in a mix of urban suburban and rural areas, according to the press release. 'This offer will enable Deliveroo to build on its significant strategic and operational progress, to strengthen its competitive advantage, to invest further in innovation and further enhance our proposition to stakeholders,' Claudia Arney, Deliveroo chair, said in a statement. Deliveroo, which works with about 176,000 local businesses, has also expanded into grocery and retail over the years, similar to DoorDash's extension beyond restaurants. The combined companies will service a total population of over 1 billion people. 'DoorDash and Deliveroo are aligned in their dedication to serving merchants across multiple categories in local commerce, enabling local businesses to connect with consumers in their communities, solving mission-critical challenges such as consumer acquisition and demand generation and an exceptional logistics experience,' the companies said in the press release.
Yahoo
07-05-2025
- Business
- Yahoo
DoorDash to purchase UK rival Deliveroo for $3.9B
DoorDash will purchase British rival Deliveroo for $3.85 billion, the companies announced on Tuesday after resuming negotiations last month. Deliveroo was approached by DoorDash with a 180 pence per share proposal, which was confirmed as the final offer, boosting Deliveroo by about 2% to 175.6 pence per share. Previous talks had stalled over disputes about Deliveroo's valuation. DoorDash said it would not make a better offer unless a third party emerged with a competing bid. Doordash Partners With Pay Later Service Klarna To Offer Us Customers Flexible Financing DoorDash will purchase British rival Deliveroo for $3.85 billion after negotiations resumed last month. The acquisition will help DoorDash grow its market share in Europe as it competes against Uber Eats and Just Eat. Deliveroo's largest markets are Britain and Ireland, making up 62% of the value of its orders in its latest quarter. Read On The Fox Business App Deliveroo's shares have struggled since their trading debut in 2021, when it was sold at 390 pence while meal delivery services were bolstered by the COVID-19 pandemic. The company then saw its shares dip by as much as 30% shortly after its trading began, marking one of the worst trading debuts on the London Stock Exchange, and its shares have since continued to drop. Doordash To Pay New York Delivery Workers Nearly $17M For Using Tips To Subsidize Wages Previous talks had stalled over disputes about Deliveroo's valuation. "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders," company chair Claudia Arney said in a statement. Deliveroo said it has received undertakings of support from investors holding about 15.4% of the shares, including from founder and chief executive Will Shu, Greenoaks and DST Global. Amazon, Deliveroo's largest investor with a 14.38% stake in the company, was absent from the list. The acquisition will help DoorDash grow its market share in Europe as it competes against Uber Eats and Just Eat. Shu, who co-founded Deliveroo in 2013 and heads the company, is set to receive about $229.7 million for his 6.4% stake. Last year, DoorDash and Deliveroo had orders worth about $90 billion combined, according to the companies. Reuters contributed to this report. Original article source: DoorDash to purchase UK rival Deliveroo for $3.9B
Engadget
06-05-2025
- Business
- Engadget
DoorDash is buying British rival Deliveroo for $3.9 billion
DoorDash has agreed to purchase British food and grocery delivery service Deliveroo for $3.9 billion, the companies have revealed in a filing with the London Stock Exchange. The acquisition will "strengthen DoorDash's position as a leading global platform," the filing said. Deliveroo operates in nine regions, namely Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom. All those regions are new for DoorDash and will give the combined companies access to a total population that exceeds 1 billion people. It doesn't sound like DoorDash is erasing Deliveroo's brand after it takes over. Instead, they'll both be part of an "Enlarged Group" operating in multiple regions around the world, giving DoorDash an expanded presence in Europe and giving it an entry into the Middle Eastern market. "Both companies are highly complementary, whether in their geographic footprints or their missions, and I am confident that being part of the Enlarged Group will accelerate the realisation of Deliveroo's full potential," Deliveroo chair Claudia Arney said in a statement. The acquisition is still subject to regulatory and antitrust approvals. As CNBC noted, though, this marks the end of Deliveroo's problems as a public company. It has faced a lot of competition and legal challenges after a period of abundance for food delivery services during the COVID-19 lockdowns, and its share prices have plummeted since it went public in 2021. Before the company went public, Amazon took on the UK's Competition and Markets Authority to become a major investor in Deliveroo. The e-commerce company was the leading investor in a funding round worth $575 million and owned a 16 percent stake in the food delivery service. If you buy something through a link in this article, we may earn commission.
The Star
06-05-2025
- Business
- The Star
DoorDash, UK's Deliveroo serve up $3.9 billion deal to take on rivals
FILE PHOTO: A Deliveroo delivery rider cycles in London, Britain, March 31, 2021. REUTERS/Toby Melville/File Photo (Reuters) -U.S. meal delivery firm DoorDash will buy Deliveroo in a deal valuing the British rival at about 2.9 billion pounds ($3.85 billion), the companies said, banking on a bigger reach and local expertise to take on competition. The groups rekindled talks last month after DoorDash approached Deliveroo with a 180 pence per share proposal, which was confirmed on Tuesday as the final offer, sending Deliveroo shares up about 2%. Still, at Tuesday's high of 176.4 pence, the stock was trading under the offer price. Deliveroo's shares have struggled since their debut when they were sold at 390 pence in 2021, a time when meal delivery services were boosted by the pandemic. The acquisition will help DoorDash grow its market share in Europe, competing against Just Eat and Uber Eats, as it adds Deliveroo's largest market, Britain and Ireland to its roster, along with others. DoorDash shares were down about 2% in U.S. pre-market trading. In 2024, Deliveroo and DoorDash had orders worth about a combined $90 billion, the companies said, with roughly 7 million and 42 million monthly active users, respectively. "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders," its Chair Claudia Arney said in a statement. Jefferies analysts said the recommended final offer, came "well ahead" of a May 23 deadline for DoorDash to make good on its initial proposal, "suggesting that the engagement to date had been more substantive than originally signalled". INVESTOR SUPPORT San-Fransisco-based DoorDash, which provides a restaurant delivery service through a mobile application, said it would not increase its offer, but reserved a right to do so if a third party emerged with a competing offer for Deliveroo. Deliveroo said it has received undertakings of support from investors holding about 15.4% of shares, including from co-founder and chief executive Will Shu, and investment firms Greenoaks and DST Global. For the deal to go through, Deliveroo will need approval of at least 75% of shareholders. Panmure Liberum analysts highlighted "the notable absence" of Deliveroo's largest shareholder, Amazon, from this list, adding that they still see Amazon as the most likely counter-bidder. Amazon, which has a 14.38% stake in Deliveroo, did not immediately respond to a Reuters request for comment. The deal is not expected to face regulatory hurdles, as DoorDash has virtually no presence in Deliveroo's 10 markets, a source told Reuters last month. Shu, who co-founded Deliveroo in 2013 with his childhood friend Greg Orlowski,would receive about 172.4 million pounds for his 6.4% stake, the third largest. Previous negotiations with DoorDash had ended in disagreement over Deliveroo's valuation, Reuters reported last year. ($1 = 0.7526 pounds) (Reporting by Anuja Bharat Mistry, Pushkala Aripaka and Yamini Kalia in Bengaluru, and Milana Vinn; Editing by Eileen Soreng, Kirsten Donovan and David Evans)
Irish Examiner
06-05-2025
- Business
- Irish Examiner
DoorDash agrees to buy Deliveroo in €3.4bn deal
US food delivery firm DoorDash will buy Deliveroo in a deal valuing the British rival at about £2.9bn (€3.4bn), the companies said, banking on a bigger reach and local expertise to take on competition. The groups rekindled talks last month after DoorDash approached Deliveroo with a 180 pence per share proposal, which was confirmed on Tuesday as the final offer, sending Deliveroo shares up about 2%. Still, at Tuesday's high of 176.4 pence, the stock was trading under the offer price. Deliveroo's shares have struggled since their debut when they were sold at 390 pence in 2021, a time when meal delivery services were boosted by the pandemic. The acquisition will help DoorDash grow its market share in Europe, competing against Just Eat and Uber Eats, as it adds Deliveroo's largest market, Britain and Ireland to its roster, along with others. In 2024, Deliveroo and DoorDash had orders worth about a combined €80bn, the companies said, with roughly 7m and 42m monthly active users, respectively. "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders," its Chair Claudia Arney said in a statement. Jefferies analysts said the recommended final offer, came "well ahead" of a May 23 deadline for DoorDash to make good on its initial proposal, "suggesting that the engagement to date had been more substantive than originally signalled". Deliveroo said it has received undertakings of support from investors holding about 15.4% of shares, including from co-founder and chief executive Will Shu, and investment firms Greenoaks and DST Global. For the deal to go through, Deliveroo will need approval of at least 75% of shareholders. Panmure Liberum analysts highlighted "the notable absence" of Deliveroo's largest shareholder, Amazon, from this list, adding that they still see Amazon as the most likely counter-bidder. Amazon, which has a 14.38% stake in Deliveroo, did not immediately respond to a Reuters request for comment. Shu, who co-founded Deliveroo in 2013 with his childhood friend Greg Orlowski, would receive about 172.4 million pounds for his 6.4% stake, the third largest. Reuters
