Will Shu to Exit as Deliveroo CEO Post-DoorDash Acquisition

LONDON – Will Shu, the CEO and co-founder of Deliveroo, is poised to step down following the anticipated completion of the company’s acquisition by U.S. giant DoorDash, CNBC has learned.

Shu, who launched Deliveroo alongside Greg Orlowski in 2013, announced his decision on Thursday, signaling the end of an era for the British food delivery innovator.

DoorDash’s acquisition of Deliveroo, valued at approximately £2.9 billion ($4 billion), was initially unveiled in May, marking a significant consolidation in the competitive food delivery market.

“I have decided that now is the opportune moment to transition,” Shu stated in a formal announcement. “Guiding Deliveroo from its nascent stages to its present form has been an extraordinary privilege.”

“The company is currently experiencing accelerated growth and enhanced profitability, successfully executing on its mission to revolutionize consumer shopping and dining habits. However, after 13 years, the time has come for me to explore my next professional endeavor,” Shu elaborated.

Deliveroo anticipates the acquisition by DoorDash to finalize on October 2, pending the conclusion of a scheduled court hearing on September 30 to officially sanction the agreement, according to company statements.

The impending acquisition signifies the conclusion of Deliveroo’s often turbulent tenure as a publicly listed entity.

In 2021, Deliveroo experienced a notable downturn as its shares plummeted by 30% upon its initial public offering. This event significantly dampened London’s aspirations to rival New York as a premier destination for high-profile technology listings. The IPO’s performance raised concerns about the valuation of tech companies in the European market and highlighted the potential skepticism surrounding the profitability and sustainability of the food delivery business model.

The Strategic Implications for DoorDash: The acquisition of Deliveroo provides DoorDash with a significant foothold in the European market, expanding its global reach and potentially diversifying its revenue streams. This strategic move allows DoorDash to compete more effectively with other global players in the delivery space, such as Uber Eats. Beyond market share, DoorDash gains access to Deliveroo’s established infrastructure, rider network, and customer base, accelerating its European expansion plans. The integration of Deliveroo’s technology and operational expertise could also lead to synergies and efficiencies within DoorDash’s existing operations.

Challenges and Synergies: Successfully integrating Deliveroo into the DoorDash ecosystem will present its own set of challenges. Differences in regional consumer preferences, regulatory environments, and competitive landscapes will need to be carefully navigated. Furthermore, maintaining Deliveroo’s brand identity and preserving the loyalty of its existing customer base will be crucial. However, the potential synergies between the two companies are substantial. By combining resources, technologies, and market expertise, DoorDash and Deliveroo can strengthen their competitive positions and drive innovation in the evolving food delivery industry. The long-term success of the acquisition will depend on DoorDash’s ability to effectively manage the integration process and capitalize on the strategic opportunities presented by this transatlantic deal.