Uber and Deliveroo ‘miles apart’ on valuation, the FT reports

Deliveroo
CEO Will Shu and Uber boss Dara Khosrowshahi.
Deliveroo/Getty

• Uber’s plan to buy UK food delivery startup Deliveroo
  has stalled because the two companies are “miles apart” on
  Deliveroo’s valuation, the Financial Times reports.
• Uber reportedly offered less than the company’s current
  $2 billion valuation, while Deliveroo is pushing for $4
  billion.
• Uber’s ambition to acquire the company, a direct
  competitor with its Uber Eats delivery service, was first
  reported in September.

Uber’s plan to acquire or invest in the hugely popular UK food
delivery startup Deliveroo has hit a snag.

The Financial Times reported on
Wednesday that the two companies are “miles apart” on
Deliveroo’s valuation after months of talks.

People briefed on the discussions said a recent offer from Uber
valued Deliveroo at less than $2 billion, a valuation it achieved
in funds raised last year. Deliveroo, meanwhile, is reportedly
set on a $4 billion valuation.

The FT’s update on the deal follows a Sky News report over the
weekend, which said Deliveroo is trying to raise between $350
million and $500 million for a valuation of between $3 billion
and $4 billion.

A person familiar with the matter confirmed this to the FT,
saying it’s looking to raise $400 million at a $4 billion
valuation.

Read more:

Uber’s CEO opened the door to a deal to buy $2 billion food
delivery firm Deliveroo

It was
first reported in September that Uber was in talks to buy
Deliveroo, which was founded in 2013. Deliveroo is a direct
competitor to Uber’s delivery service Uber Eats, which has only
been in the UK since 2016.

A Deliveroo spokesman told Business Insider: “This is just yet
more speculation and Deliveroo does not comment on speculation.”
Business Insider contacted Uber for comment.

Neither side has commented meaningfully on the talks. Uber CEO
Dara Khosrowshahi appeared to open the door to a deal on a trip
to London last month, when he said: “Is something going to happen
with Deliveroo? Who knows?”

Meanwhile, in an interview with Business Insider in October,
Deliveroo CEO Will Shu said his
company is not for sale. “Deliveroo is the fastest-growing
company in Europe, so people love to chat about us,” he said.