Deliveroo CEO, Shu, steps down following his refutation of rumors about his impending departure.
In a significant move for the food delivery industry, Deliveroo has announced that it will be acquired by US-based DoorDash in a £2.9bn takeover deal. The acquisition, which is expected to be effective in early October, marks a new chapter for Deliveroo as it merges with one of its key competitors. The news was met with excitement and anticipation, as the combined company is expected to create a takeaway behemoth with a combined Gross Order Value of approximately $90bn in 2024. With a presence in more than 40 countries, the merged entity will serve about 50 million customers per month, providing fierce competition to rivals. Will Shu, co-founder and CEO of Deliveroo, has been a key figure in creating a British success story. He pioneered and redefined a new category with Deliveroo, leading the company for 13 years. Shu expressed pride in everything Deliveroo has achieved, thanking employees, merchant partners, riders, consumers, and investors for their support. However, Shu has announced his decision to step down from Deliveroo's leadership now, stating that he will leave the board when the acquisition by DoorDash becomes effective. No other person will remain on the board after the merger, as implied by the change but not specified in the announcement. Claudia Arney, Chair of Deliveroo, praised Shu's unique mix of passion, vision, and commitment in creating and growing Deliveroo. She stated that the company is entering a new era as part of the enlarged DoorDash Group. Deliveroo listed on London's Stock Exchange in 2021, but the share price has since halved after its initial listing. The company took 10 years to turn a profit due to heavy investment, competition, and high costs associated with its gig economy model. Despite this, Shu maintained his optimism, expressing confidence in the future of the merged entity. The takeover is expected to provide a boost for both companies, as they join forces to tackle the challenges and opportunities in the rapidly evolving food delivery market. With Shu's departure, Deliveroo begins a new chapter in its journey, aiming to continue its success story as part of the DoorDash Group.
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