CEO of Deliveroo to Resign after DoorDash Acquisition
In a significant move for the food delivery industry, San Francisco-based DoorDash has agreed to buy Deliveroo for £2.9 billion ($4 billion) in a deal expected to be completed in October. This acquisition will create a delivery service present in more than 40 countries, expanding DoorDash's global footprint.
Deliveroo, founded by Will Shu in 2013, has been a disruptor in the food delivery market. Shu, who co-founded Deliveroo with his childhood friend Greg Orlowski, announced his resignation following the acquisition, effective October 2, 2025. In a statement, Shu expressed his gratitude for the journey, stating that taking the company from an idea to its current state has been amazing. He also mentioned that after 13 years, he wants to contemplate his next challenge.
The idea for Deliveroo was born out of Shu's personal struggle to find restaurants that would deliver food to his London office. This challenge led to the creation of a platform that connects customers with local restaurants and delivery riders, revolutionising the way people shop and eat.
Deliveroo's operations have been present in over 40 countries, including the United States where DoorDash, the largest food delivery app, reigns supreme. However, both companies have faced controversy over the status of their self-employed riders. In late 2023, the UK Supreme Court ruled that Deliveroo riders were not entitled to trade union rights such as collective bargaining.
Despite the controversies, Deliveroo's growth and profitability have been accelerating. The company posted its first annual profit in March after sizeable full-year losses. This surge in profitability can be attributed, in part, to the surge in demand during the Covid-19 pandemic from lockdown-hit customers.
The offer from DoorDash is worth £1.80, less than half Deliveroo's IPO price of £3.90. This lower offer has been met with some criticism, as Deliveroo's initial public offering in 2021 valued the company at £7.6 billion.
In 2021, DoorDash entered the European market with the purchase of Finland-based Wolt for $8.1 billion. With the acquisition of Deliveroo, DoorDash is set to further solidify its position as a global player in the food delivery market.
As Deliveroo prepares for its transition under new ownership, it leaves behind a legacy of transforming the way people shop and eat. The company's mission, though challenging, has been fulfilled, and its impact on the food delivery industry will be felt for years to come.
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