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Expanding its efforts into the online food-delivery market, Amazon led a $575 million investment in London-based food delivery company Deliveroo, which was once of interest to Uber and Uber Eats.
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“Amazon is set to be the largest investor in Deliveroo’s Series G funding round and Deliveroo is raising a total of $575 million with participation from Amazon,” the London-based company wrote in a blog-post on Friday. “This takes the total Deliveroo has raised to date to $1.53 billion.”
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Deliveroo operates in 14 countries, including the UK, France, Germany, Singapore, Taiwan, Australia and the UAE, working with around 80,000 restaurants, 60,000 delivery persons and 2,500 permanent employees.
With this investment, Amazon intensifies its competition with Uber Eats, given that in 2018 Uber was interested in buying Deliveroo outright, but talks stalled after the two companies failed to agree on a valuation, The Verge reported.
“We’re impressed with Deliveroo’s approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options,” Deliveroo’s blog quoted Doug Gurr, Country Manager, Amazon UK, as saying.
Amazon has been looking into establishing itself in the food business for a while now, however, it remains unclear exactly how Amazon plans to club Deliveroo’s services to align with its own.
Earlier in 2015, Amazon launched “Amazon Restaurants” — its own takeaway service in the US.
The business expanded to the UK in 2016 but within two years the venture was killed by competition coming from other brands like Uber Eats and Deliveroo.
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