The Telegraph

Amazon invests in Deliveroo as part of £450m funding round

The Telegraph logo The Telegraph 17/05/2019 8:00:00 Olivia Rudgard
© Getty

Deliveroo said on Friday that Amazon was the lead investor of a new £450m funding round in the British online food delivery company.

The firm said that it would use the money to expand the tech team at its UK headquarters and tap new customers, as well as other initiatives.

Amazon recently pulled back on its own restaurant delivery business in the UK, closing the London arm of its the service in December last year. 

The businesses offer rapid food delivery from established restaurants and takeaways which is ordered on a mobile phone app. © Nick Ansell/PAThe businesses offer rapid food delivery from established restaurants and takeaways which is ordered on a mobile phone app.

It faced competition from Just Eat and Deliveroo as well as taxi firm Uber, which launched its Eats service in London in June and has been expanding it across the UK. 

The businesses offer rapid food delivery from established restaurants and takeaways which is ordered on a mobile phone app. 

In September the Telegraph reported that Amazon had made two preliminary approaches for Deliveroo, which has also thought to have been in talks with Uber, with one taking place nine months earlier.

Uber recently floated on the US stock market in New York and suffered a fall from its initial price of $45 a share, dropping to lows of $37 on Monday. 

The Amazon deal is likely to be announced in the next few days, though sources told Sky that it could yet fall apart. 

Gallery: What Amazon plans to do next (Lovemoney)

Deliveroo has been considering a new fundraising round which would value it as highly as $4bn.

Its most recent fundraising round, 18 months ago, valued it at just over $2bn. It is also thought to be considering offering its shares to the public, but this is expected to happen next year, rather than this year as previously thought. 

Amazon said it would not comment on speculation. Deliveroo did not respond to a request for comment.

MSN UK are Empowering Happiness for mental health awareness month. Find out more about our campaign and the charities working to stop people falling into crisis here.

17. toukokuuta 2019 11:00:00 Categories: Entertainment Weekly The Telegraph

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