Deliveroo's founder Will Shu resigns following DoorDash's acquisition takeover
DoorDash, the food delivery service that was founded in San Francisco in 2013 by Tony Xu and Andy Fang, is set to undergo a significant expansion. The company, which operates in all 50 U.S. states and works with more than 1 million drivers, has announced that it will be acquiring Deliveroo.
The deal, valued at £2.9billion, is expected to be completed on 2 October. This acquisition marks a significant windfall for Will Shu, who will receive a £178million payout from his 6.6% stake in Deliveroo. Staff who collectively own around 36million shares will also share a £65million pot.
The sale of Deliveroo has not been without its challenges. On its debut, the company's stock fell by more than a quarter. A court hearing will take place on 30 September to confirm the takeover.
In preparation for the acquisition, Will Shu has announced that he will be stepping down as the CEO of Deliveroo. His non-executive directors, including Karen Jones and Peter Jackson, will also step down once the takeover is complete.
Deliveroo's financials have been on an upward trajectory. In 2024, the company made sales of around £2billion. Despite this success, the food delivery industry has been a competitive landscape, with companies like UberEats and Just Eat Takeaway.com also vying for market share.
The acquisition by DoorDash is expected to be completed early next month. With the combined resources and expertise of both companies, it will be interesting to see how this merger shapes the future of the food delivery industry.
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