DoorDash acquires Deliveroo, says app still available to Singapore users
A delivery person for DoorDash rides his bike in the rain in the Manhattan borough of New York City, New York, US, Nov 13, 2020. (File photo: REUTERS/Carlo Allegri)
SINGAPORE: San Francisco-based DoorDash on Thursday (Oct 2) acquired Deliveroo and said the latter's app and services will continue in Singapore.
DoorDash co-founder and CEO Tony Xu said in a news release on Deliveroo's website that "the Deliveroo app and products you know and love aren’t going anywhere".
"You’ll still be able to order your favourites, run your businesses, or work and earn on the platform as you do today," said the CEO of the largest food delivery app in the United States.
DoorDash in May agreed to buy Deliveroo for 2.9 billion pounds (US$4 billion) in a deal expected to be completed at the start of October.
The DoorDash deal will create a delivery service present in more than 40 countries, serving around 50 million monthly active users.
DoorDash entered the European market in 2021 with the purchase of Finland-based Wolt for US$8.1 billion.
Deliveroo's initial public offering in 2021 had been London's biggest stock market launch for a decade, valuing the group at £7.6 billion.
The offer from DoorDash is worth £1.80, less than half Deliveroo's IPO price of £3.90.
"I couldn’t be more grateful for the opportunity to come together with Deliveroo to serve its stakeholders – you.
"You have my commitment that we will work tirelessly to help power a future where local wins – everywhere," Xu said.
"What excites me is not changing what works, but building on it together."
Deliveroo posted its first annual profit in March following sizeable full-year losses owing to high investment costs since its chief executive Will Shu founded the company.
Shu said last month he would step down after DoorDash's takeover is complete.
"Taking Deliveroo from being an idea to what it is today has been amazing," Shu said in the statement.
"Today the company's growth and profitability are accelerating and we are delivering on our mission to transform the way people shop and eat, but after 13 years I want to contemplate my next challenge," he had said.
Years after personally making Deliveroo's first delivery in London, the company experienced a surge in demand during the COVID-19 pandemic from lockdown-hit customers.
However, increased competition saw it scale back global operations, most recently with an exit from Hong Kong.
As big players in the gig economy, food delivery apps 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.
