Deliveroo employees are set for a £65 million windfall as the company moves toward a £2.7 billion sale to US rival DoorDash.
The American food delivery giant, valued at $80 billion (£60 billion), has proposed acquiring Deliveroo at 180p per share. If the deal goes ahead, current and former staff who hold shares in Deliveroo—estimated at around 36 million shares—could collectively receive tens of millions, according to company filings.
Founder Will Shu stands to gain even more. With a roughly 6% stake in the business, he could earn over £170 million. In addition, he holds 15 million restricted stock units, which may deliver tens of millions more depending on the final terms of the acquisition.
Deliveroo Board Signals Support for £2.7bn DoorDash Takeover
Deliveroo has confirmed that its board is “minded to recommend” a proposed £2.7 billion takeover by US rival DoorDash—pending a formal offer. DoorDash, listed on the New York Stock Exchange and valued at $80 billion (£60 billion), has until May 23 to confirm its bid at 180p per share.
A successful deal would result in a £65 million payout for Deliveroo staff, who collectively hold around 36 million shares, while founder Will Shu could gain over £170 million from his 6% stake—plus potentially tens of millions more from 15 million restricted stock units.
One former senior Deliveroo executive described the offer as “fair value” in a market with limited potential buyers, calling it a “consolidation play” and noting that “it’s hard to see a player other than DoorDash get past the CMA.”
Speculation has emerged over possible rival bids, including from major Deliveroo shareholder Amazon—alongside China’s Meituan and Germany’s Delivery Hero. However, analysts at Jefferies warned that a takeover attempt by Amazon would likely face scrutiny from the Competition and Markets Authority (CMA), reducing the chances of regulatory approval.
If Amazon supports the DoorDash acquisition, it stands to gain approximately £387 million from its 14% stake in Deliveroo.
DoorDash’s acquisition of European rival Wolt in 2022, valued at $8 billion, showed its appetite for international expansion. However, its relatively limited market overlap with Deliveroo may reduce the likelihood of regulatory resistance in this deal.
Deliveroo’s Journey: Rapid Growth, Diversification—and Market Challenges
Founded in 2013 by Will Shu, Deliveroo has grown into a global food delivery platform operating across 10 markets, employing 3,800 staff and working with around 150,000 freelance couriers.
Under Shu’s leadership, the company has expanded beyond restaurant takeaways, venturing into groceries and a wider range of non-food categories including flowers, DIY supplies, and toys.
Despite its growth and diversification, Deliveroo has faced persistent challenges in the public markets. Its 2021 initial public offering (IPO) proved disastrous, with shares plunging 25% on the first day of trading. Once valued at £7.6 billion (390p per share), the company’s market value has significantly declined—closing at around 171p per share on Friday.
Labour Scrutiny, Industry Shifts, and the Broader Implications of a Deal
Deliveroo’s share price struggles have been partly driven by ongoing scrutiny over its treatment of gig economy workers. In a landmark legal victory in 2023, the UK Supreme Court ruled that Deliveroo’s riders cannot be classified as employees. While the company has since signed a voluntary agreement with trade unions to guarantee minimum wage—albeit only while riders are actively delivering—critics argue it fails to account for unpaid waiting time between jobs.
The broader food delivery industry has seen a wave of consolidation following a pandemic-fuelled boom. In February, Prosus, a South African-owned tech investment giant, made a £3.4 billion bid for Just Eat Takeaway, Deliveroo’s Anglo-Dutch rival.
DoorDash, founded in 2013 by Chinese-American entrepreneur Tony Xu, is the dominant player in the U.S. food delivery market, holding just over 60% market share, according to Earnest Analytics. Xu himself is estimated to be worth $2.2 billion.
If the takeover proceeds, DoorDash would be thrust into direct competition with Uber Eats in the fiercely contested London delivery market.
The deal would also mark another blow to the London Stock Exchange, which has seen a string of high-profile departures and continues to struggle in attracting new listings.
