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- Amazon has led a $575 million funding round in British food delivery startup Deliveroo.
- The news follows rumours that both Amazon and Uber were considering an acquisition of Deliveroo, a major rival to Uber Eats outside the US.
- The food delivery startup has raised $1.53 billion to date, making it one of the best-funded startups in Europe.
- Deliveroo was valued at $2 billion at its last fundraise.
Amazon has taken a stake in British food delivery startup Deliveroo, acting as the main investor in a major $575 million found of financing.
The new funding takes the total raised by Deliveroo to $1.35 billion to date, making it one of the best funded startups in Europe.
Deliveroo has not confirmed its current valuation. The company was last valued at $2 billion in a previous funding round, and Business Insider understands the company has been targeting a new valuation of at least $4 billion.
It isn’t clear how much Amazon paid for its share of Deliveroo, nor how big that stake is. Other investors in the round include T. Rowe Price, Fidelity Management and Research Company, and Greenoaks.
Deliveroo CEO Will Shu said in a statement: "This new investment will help Deliveroo to grow and to offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses, and to create more flexible, well-paid work for riders.
"Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation. This is great news for the tech and restaurant sectors, and it will help to create jobs in all of the countries in which we operate."
The deal gives the world’s most valuable company a stake in one of the hottest European startups, and also in the fast-growing food-delivery space. Deliveroo is one of the biggest rivals to Uber Eats outside the US, operating across 14 markets including the UK, Australia, Hong Kong, and the UAE.
The company offers a slick app through which customers can order food for delivery from local restaurants. A Deliveroo "rider" on a bicycle or motorbike will deliver the food, saving restaurants from having to employ their own delivery drivers. The firm has been criticised for employing its riders on a casual basis, meaning they are not legally entitled to minimum pay or other benefits, but does offer free rider insurance and online learning courses.
The round also shores Deliveroo up against its main rival Uber Eats, Uber’s food delivery arm. Bloombeg last year reported that Uber was considering buying Deliveroo. A deal never materialised, and Uber floated on the New York Stock Exchange days ago.
Doug Gurr, Amazon’s country manager in the UK, said: "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."
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Source: Business Insider – sghosh@businessinsider.com (Shona Ghosh)