Amazon squares up to Uber with backing for UK food app Deliveroo
News of biggest online retailer buying into one of Europe’s fastest-growing tech companies hits shares of rivals
London — Amazon has taken a stake in British online food delivery company Deliveroo, leading a $575m fundraising to pit itself against Uber Eats in the global race to dominate the market for takeaway meals. The news the world’s biggest online retailer had bought into one of Europe’s fastest-growing tech companies sent shockwaves through the sector, hitting shares in European rivals Just Eat, Takeaway.com and Delivery Hero. The online giants are betting the takeaway market will expand as it branches out from fast, unhealthy meals to nutritious dishes, and that they have the scale to beat smaller rivals that are still largely sacrificing profits to grow. Deliveroo founder and CEO Will Shu said the fundraising will enable the loss-making group to increase its reach, develop technology and pursue innovations such as expanding its own kitchens that can be rented to restaurants to meet demand. Deliveroo did not give a figure for Amazon’s contribution. It has now raised $1.53bn to date, he...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.