U.S. rival DoorDash to acquire Deliveroo in a £2.9bn deal, marking a significant expansion for DoorDash in the British takeaway market.
DoorDash Snags Deliveroo in £2.9 Billion Deal
In a bombshell move, US food delivery titan DoorDash has agreed to purchase Deliveroo in a deal valuing the London-based startup at an eye-popping £2.9 billion. Here's the lowdown on this mind-blowing merger!
The California-based group, which reigns supreme as the largest food delivery platform in the United States, plans to foot a whopping 180p per share in cold, hard cash for Deliveroo. This offer comes with a 29% premium compared to Deliveroo's closing share price on the day preceding the tender offer and a massive 44% premium over the initial offer letter price.
DoorDash claims this acquisition will pump up its geographic presence by venturing into an additional nine markets, including the UK. That means they'll now be operating in over 40 countries worldwide!
The deal also promises the tantalizing opportunity to allocate resources more efficiently to strengthen competitive advantage. In simple terms, they're dropping big bucks to stay ahead of the curve.
Deliveroo, which was born in 2013 by American national Will Shu, came to life when Shu grew sick of London's paltry options for late-night nosh. should the deal go through, Shu stands to pocket a whopping £172 million, based on his 6.4% share in the business.
Shu spilled the beans, saying, "We're now embarking on a transformative new chapter. DoorDash and Deliveroo are like-minded organizations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders, and local communities."
With the enlarged group possessing the firepower to invest in product, technology, and overall consumer value proposition, the UK market could soon witness a fierce two-horse race between DoorDash and Uber at the top.
So buckle up, folks, because the food delivery industry is about to get a whole lot hotter!
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- With the purchase valuing Deliveroo at £2.9 billion, DoorDash is investing a significant amount to boost their geographic presence, entering an additional nine markets and operating in over 40 countries worldwide.
- In the food delivery industry, the merger between DoorDash and Deliveroo could create a fierce two-horse race, with the enlarged group having the potential to invest in technology for a competitive advantage over Uber.
- If the deal goes through, Deliveroo's founder, Will Shu, will receive a substantial £172 million, based on his 6.4% share in the business.
- The acquisition of Deliveroo by DoorDash may put pressures on the finance and business sectors, as the combined group will have massive resources to invest in product, technology, and overall consumer value proposition.
