Deliveroo’s (GB:ROO) founder and CEO Will Shu will step down after U.S. rival DoorDash (DASH) finalizes its takeover of the British food-delivery company. This move signals a major transition for Deliveroo as it joins the larger DoorDash group with fresh growth opportunities. All non-executive directors of Deliveroo are also set to step down once the deal takes effect, expected by early October 2025.
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For context, Deliveroo is a UK-based food-delivery company operating across several European markets. Meanwhile, DoorDash is a top U.S. food-delivery platform expanding globally through acquisitions.
Deliveroo CEO Will Shu to Step Down
Shu, who co-founded Deliveroo in 2013, said that now is the right time for him to step down. He added that it has been an incredible journey turning Deliveroo from an idea into a major food-delivery brand, but now he is ready for a new challenge.
His exit ends a remarkable run that made him one of Britain’s best-known tech founders and turned Deliveroo into a strong homegrown brand. However, the company has struggled with rising competition, thin profit margins, and slowing growth in the food-delivery sector. These challenges have driven its market value down from around £7.6 billion at its 2021 IPO to a fraction of that today.
DoorDash Eyes Expansion
In May, DoorDash announced plans to buy its U.K. rival Deliveroo for about $3.9 billion. Earlier this month, the deal cleared a key hurdle when it received approval from the European Union.
With this deal, DoorDash expands its foothold in Europe, adding Deliveroo’s key markets, Britain and Ireland, while taking on rivals like Just Eat (JTKWY) and Uber Eats (UBER). The combined reach and local know-how of both companies are expected to strengthen DoorDash’s competitive edge.
Additionally, the takeover underscores the wider consolidation trend in the food-delivery sector as companies seek size and efficiency while dealing another blow to London’s public markets.
Is DASH a Good Stock to Buy Now?
Turning to Wall Street, DASH stock has a Moderate Buy consensus on TipRanks based on assessments by 30 Wall Street analysts over the last three months. This is based on 22 Buys and eight Hold ratings. The average DASH stock price target is $304.19, which points to a potential 13.5% upside.
