Amazon Invests $575 Million in Food Delivery Service Deliveroo

Amazon Invests $575 Million in Food Delivery Service Deliveroo

Business

Amazon Inc. is in the discussions to invest in billion-dollars in a UK-based food delivery app. It is a big investment in Deliveroo, food courier. As per the BBC, Amazon is the most significant stakeholder in Deliveroo’s latest round of fundraisers. Sky News reported about the fundraising on Thursday. Reportedly, Deliveroo is probably launching the deal in the upcoming days. Current investors of Deliveroo are T. Rowe Price, Greenoaks, and Fidelity Management. Among all investors, Amazon remains on top and raising $575 million in funding for the food delivery app. Overall, the food courier has gained a backup of $1.53 billion.

Deliveroo, a British food delivery company, delivers food from restaurants to users. It functions with an app, where the user can order food online from nearby restaurants. JustEat and UberEat are existing U.K. competitors of the company. Apart from the U.S., the food delivery company currently functions across other fourteen markets, including Australia, Spain, the UAE, Ireland, and Hong Kong. After gaining such a vast backup, Deliveroo would achieve the potential to compete with its rivals. As per reports of Sky News, last year Deliveroo announced that it was looking for funding up to $500 million from financiers.

Deliveroo noted it would utilise the funding to enhance its intensify its engineer fleet in London headquarters. Besides, it will extend its delivery reach to provide food delivery to new customers. Founder and CEO if DEliveroo Wil Shu, said he got business inspiration from Amazon, and they are looking forward to functioning with such a customer-obsessed organisation. He said it is good news for the tech and restaurant industry. Besides the move could introduce new job opportunities in the nations where Deliveroo operates. Before this, Uber intended to buy the food delivery service last year. But the discussions ended up after both companies failed to agree on a value. Now Amazon aims to invest in Deilveroo, which would boost Amazon’s rivalry with another food service, Uber Eats.

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