Deliveroo’s stock soars amid takeover talks with DoorDash, putting founder will Shu on track for a £172m windfall.

Deliveroo shares surged 17% on Monday as investors cheered news of a possible £2.7bn takeover by US delivery giant DoorDash—a deal that could make founder Will Shu £172m richer.

The London-based delivery firm revealed late Friday that it had received a proposal from DoorDash, the dominant player in America’s food delivery market, offering a potential buyout at 180p per share. While the bid is not yet formal, Deliveroo’s board signalled it would likely recommend the deal to shareholders if confirmed.

By Monday morning, Deliveroo’s share price had jumped to 171p, the highest level seen since 2022, as excitement rippled through the market. The potential takeover has also prompted Deliveroo to suspend its previously announced £100m share buyback scheme, fuelling speculation that a deal is imminent.

Still, the company urged investors not to act just yet. “There can be no certainty that any firm offer for Deliveroo will be made,” the firm stated. Under UK takeover rules, DoorDash has until 5pm on 23 May to either make a formal bid or walk away.

For founder and CEO Will Shu, who owns a 5.9% stake in Deliveroo, a successful deal could yield a personal fortune of £172m. The former banker, who founded Deliveroo in 2013 after growing frustrated by the lack of late-night food options while working long hours, still leads the company today. Shu even made deliveries himself by scooter in the company’s early days.

Last year, he sold nearly 9.4 million shares for £14.8m, citing personal property investments. Despite market speculation earlier this year that Shu might step down, Deliveroo firmly denied those reports, saying he remained focused on the company’s long-term future.

Deliveroo’s popularity soared during the pandemic, becoming one of the UK’s most widely used delivery apps with 7.1 million active users in 2024. However, the company struggled with profitability until it finally recorded its first annual pre-tax profit last year—£12.2m on £2.07bn in revenue.

Since its 2021 IPO at 390p a share, Deliveroo’s stock has largely underperformed, plunging 25% on its debut day and never recovering to its original valuation. A DoorDash buyout at 180p would still be well below the IPO price—but could nonetheless be seen as a strong exit in today’s subdued market.

Recent months have seen turbulence for Deliveroo. The company announced plans to exit the Hong Kong market due to fierce competition and poor sales. In March, it spooked investors with a weaker-than-expected earnings forecast, further dampening sentiment.

Under Shu, Deliveroo has broadened its scope to include grocery, flowers, and stationery deliveries—mirroring a similar diversification strategy by DoorDash in the US. But the company has also faced criticism over rider pay and treatment. In 2022, it entered into a voluntary agreement with the GMB union to guarantee riders would earn at least minimum wage. However, reports suggest some riders still fall below that threshold once waiting time is considered.

A DoorDash acquisition would mark the latest consolidation in the global delivery sector. Just two months ago, Dutch investor Prosus struck a €4.1bn (£3.5bn) deal to buy Just Eat Takeaway.com, continuing a trend of industry giants snapping up competitors to expand reach and streamline operations.

Whether DoorDash finalises its move or not, one thing is clear—Deliveroo has never looked more appetising to investors.