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DoorDash has agreed to buy UK food delivery company Deliveroo in a £2.9bn deal, marking the latest London-listed group to be taken over by a US rival.
San Francisco-based DoorDash said it would pay 180p a share in cash for Deliveroo, which has struggled as a public company after listing in London to fanfare four years ago.
Deliveroo, which operates a food delivery app in nine countries, has faced intensifying competition from Uber Eats and only reported its first full annual profit in March.
DoorDash’s operations are focused in the US, Canada, Australia and New Zealand and do not overlap with those of Deliveroo, which was founded by Will Shu in 2013.
Tony Xu, the chief executive and co-founder of DoorDash, said: “The enlarged group will bring together DoorDash’s strong operating playbook with Deliveroo’s local expertise to invest in innovation and execution at an even higher level.”
This is a developing story
