Uber's plan to buy Deliveroo, a direct competitor with its Uber Eats delivery service, was first reported in September.
- 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.
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.
Source: BUSINESS INSIDER