By The $7.2 billion Deliveroo acquisition represents a stunning coup for DoorDash CEO Tony Xu, who outflanked Uber’s Dara Khosrowshahi after eighteen months of secret negotiations and three rejected bids. Insider accounts reveal:
The Bidding War Timeline:
- March 2024: Uber’s $6B cash-and-stock offer rejected over valuation concerns
- August 2024: DoorDash opened with £3.20 bid – 25% discount to final
- January 2025: Just Eat Takeaway’s £3.75/share bid failed
Key Negotiation Turning Points:
- Amazon’s Role: Jeff Bezos played kingmaker in the deal, personally advising Deliveroo’s board to partner with DoorDash rather than rival Uber
- Stock vs Cash: DoorDash’s all-stock offer protected Deliveroo from market volatility
- Golden Parachutes: Deliveroo CEO Will Shu guaranteed $48M payday
Strategic Missteps:
- Uber underestimated regulatory risks from its 2021 Deliveroo investment
- Deliveroo directors noted Uber’s distracted state during due diligence – a factor that strengthened DoorDash’s positioning
- Deliveroo board feared Uber would dismantle its R&D unit