Deliveroo has suspended their £100 million share buyback programme following US takeover proposals from DoorDash.
Share rose by as much as 16% after Deliveroo confirmed the US takeover talks as they received an “indicative proposal” from DoorDash on 5 April.
Deliveroo chiefs said they will “be minded to recommend” DoorDash’s 180p per share offer to shareholders, a firm offer will need to take place by 23 May.
Panmure Liberum analyst Sean Kelly said, “With good execution, Deliveroo could be a kingmaker asset for DoorDash in the UK and Europe.
“Yet, 180p is by no means a knockout valuation and so we see potential for Deliveroo to receive a counterbid.”
Nick Shay, Group Vice President, Head of travel & Hospitality International at Publicis Sapient said, “The proposed acquisition of Deliveroo by DoorDash for £2.7 billion is yet another signal that the global tech landscape is rapidly consolidating around digital platforms that are nimble, scalable, and deeply embedded in consumer behaviour. Deliveroo has spent the last decade building a robust logistics and data infrastructure – its value lies not just in food delivery, but in its ability to orchestrate complex, real-time, last-mile operations at scale.
“From a digital transformation perspective, this deal reflects how technology-first companies are winning the future by owning the customer journey end-to-end.
“DoorDash isn’t just buying market share; it’s acquiring a sophisticated technology stack, local market intelligence, and AI-powered operational capabilities that would otherwise take years to replicate organically.
“However, the fact that one of the UK’s flagship tech companies is now exiting the public market raises important questions about how we nurture and retain digital innovation ecosystems domestically.
“If we want the next Deliveroo to scale globally from a UK base, we must double down on investment in emerging tech, talent pipelines, and policies that create fertile ground for digital-first and AI growth. This acquisition is both a validation of UK tech ingenuity – and a call to action.”
