Takeaway delivery service next in Amazon’s bid for world domination
By Sarah Wood | 17th May 2019
Internet giant Amazon is to invest hundreds of millions of pounds in British takeaway delivery service, Deliveroo.
Amazon has confirmed it will back the company as part of a £450m funding round, alongside existing investors T Rowe Price, Fidelity Management and Research Company, and Greenoaks, as reported by Sky.
It takes the total amount invested in Deliveroo to more than £1.17bn in the six years since it was launched.
The cash injection will give the firm a major boost in its international battle with Uber Eats. Smaller rival Just Eat saw shares fall 10% when the Amazon news broke, over fears it would be squeezed out of the market.
Deliveroo says the new funding is great news for the restaurant and tech sectors. It says it will enable investment in its tech team, expand further to reach new customers and develop its delivery-only super kitchens.
Amazon is the world's largest internet business. However, its previous move to break into the UK food delivery market was not a success. Last December, it closed its London-based takeaway delivery service, amid fierce competition from Deliveroo, Uber Eats and Just Eat, among other rivals.
Deliveroo handles takeaway orders for restaurant chains such as Pizza Express, Five Guys and Wagamama and uses about 15,000 delivery riders in the UK.
The firm operates in more than 500 towns and cities in countries around the world, including Australia, France, Hong Kong, Taiwan and the United Arab Emirates.
Punchline said: "Amazon has squeezed the high street and now it's going to tap into the takeaway market. This is bad news for companies like Just Eat and independent businesses, who don't have the resources to stand up to the might of Amazon."
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