Previously, the Ridesharing Forum team reported the possibility of a takeover of DoorDash by Deliveroo. The scoop was clear on Deliveroo, making the confirmation last Friday, but now, it is making a stop.
The latest: there will be no takeover, as Deliveroo’s finances have bounced back. The story is below.
Highest in over 3 years
On Friday, a few moments after the European markets closed, Deliveroo announced it is accepting the offer to be acquired by DoorDash, one of the biggest platforms for delivery in the United States.
However, on Monday, perhaps a weekend magic, Deliveroo jumped to their highest-ever level in over three years, following the $3.6 billion takeover offer from the American firm.
So, for this simple reason, Deliveroo is taking back its word to the media, saying it is suspending the $133.5 million buyback program it announced in March.
The point of decision
On Monday, Deliveroo’s shares were up 17.6 percent to 172.4 pence, the highest they have been since January 2022.
Last week, Deliveroo revealed it received a cash offer – yes, a cash offer – from DoorDash of 180 pence per share of Deliveroo, valuing the company at about $3.6 billion, finance media has calculated.
This is why Deliveroo has also stated it is considering the proposal with advisors and said during that time it was in further discussions with DoorDash.
It’s a roundabout. Deliveroo’s shares saw a steep decline in 2022, the last it had the high achievement, after the company went public in London the previous year. Investors are concerned about growth in the food delivery market in the post-COVID-19 era, as well as stifling industry competition and questions over workers’ rights under its gig economy model.
So, for those hoping for a merger, like how it is in Southeast Asia’s ridesharing platforms, it not going to happen soon.
Deliveroo operates in markets such as the United Kingdom, France, Belgium, Italy, Ireland, Qatar, and Singapore.
So, it seems Deliveroo listened to what people were saying, such as those who stated DoorDash and Deliveroo should focus on more important things.