Amazon has become a major investor in fast-growing UK-based food courier firm Deliveroo.
The exact figure was not given, but the US online giant was the biggest investor in Deliveroo’s latest round of fund raising, which raised a total of $575m (£450m). Several existing US investors also contributed, taking the total raised by the delivery firm to $1.53bn (£1.2bn) since it was launched six years ago.
Deliveroo stated that it will use the new investment to grow the engineering team in its London headquarters, expand further to reach new customers, and develop innovations such as its delivery-only kitchens.
Analysts said the backing from Amazon gives Deliveroo a boost against rivals such as JustEat and Uber Eats. The firm’s founder and Chief Executive Will Shu said: “Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation.”
Doug Gurr, Amazon’s UK Country Manager, commented: “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.
“Will and his team have built an innovative technology and service, and we’re excited to see what they do next.”
The online giant’s previous attempt to break into the UK food delivery market was not a success with it closing its Amazon Restaurants operation late last year amid fierce competition. It has previously been reported to have made approaches to buy Deliveroo outright, with Uber also said to have shown an interest in buying the British firm.
Deliveroo was founded in 2013 and now works with over 80,000 restaurants and takeaways to offer delivery services. It has more than 60,000 courier riders signed up to platform. As well as the UK, it operates in Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, and Kuwait.
NAM Implications:
- Having achieved critical mass, Amazon are in a good position to buy/invest in any possible combination of businesses that it believes may complement their relationship and insights with their customer base.
- Deliveroo is but one of many options…
- Watch them build and extend upon the Deliveroo model…
- Without having to concern themselves about profit in the mid-future.
