Deliveroo, the food delivery app, has agreed to be taken over by US giant DoorDash in a deal valuing the business at £2.9 billion.
The tie-up will lead to company with a presence in more than 40 countries serving about 50 million users a month.
"The combination with Deliveroo will strengthen DoorDash's position as a leading global platform in local commerce," the two firms said.
Will Shu, chief executive and co-founder of Deliveroo, said he was "very proud of everything we have achieved as a standalone business".
However, he said the deal with DoorDash, which is based in San Francisco, was "transformative".
"DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values," he said.
"The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition."
Deliveroo, which was co-founded by Mr Shu in 2013.
It works with approximately 176,000 of the best-loved restaurants, grocers and retail partners, as well as over 130,000 riders with a goal to provide the best on-demand delivery experience in the world.
Deliveroo served approximately 7 million monthly active consumers in 2024.
Deliveroo is headquartered in London, with offices around the globe. Deliveroo operates across 9 countries: Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom.
The companies both started out as food delivery services, offering customers convenient and quick access to a range of restaurants and takeaways, but DoorDash has grown into a much bigger business.
Claudia Arney, Chair of Deliveroo, said, "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders.
"Deliveroo changed the face of food delivery in the UK and around the world. Thanks to Will and the dedication and innovation of the team, consumers have new food experiences, merchants new opportunities for growth and riders a new type of work. I'm immensely proud to have worked alongside the team and thank them for their hard work.
"Looking ahead, this offer will enable Deliveroo to build on its significant strategic and operational progress, to strengthen its competitive advantage, to invest further in innovation and further enhance our proposition to stakeholders. We are pleased that DoorDash is excited to invest into the business and team and shares our commitments to supporting the interests of riders, merchants and consumers.
"Both companies are highly complementary, whether in their geographic footprints or their missions, and I am confident that being part of the Enlarged Group will accelerate the realisation of Deliveroo's full potential."
