Amazon Is Biggest Investor In Deliveroo's Latest Funding Round
Food delivery startup Deliveroo successfully raised $575 million in its latest funding round, with e-commerce giant Amazon being one of its biggest investors. Jeff Bezos' firm confirmed its investment in the food courier but neglected to mention how much exactly it had placed into the company.
Following the success of its latest funding round, Deliveroo announced that it would be using the new capital to expand its service to more cities around the world.
The firm, which was founded in 2013, also intends to use the capital to improve its services and to grow its own food business. When asked why it had made such a huge investment in the startup, Amazon mentioned that it was attracted by the company's innovative technology approach to its delivery service.
Since it was established, Deliveroo has managed to raise more than $1.5 billion from different investors throughout Europe and the United States. The London-based firm is currently one of the fastest growing tech companies in Europe.
It currently has operations in over two hundred cities, including France, Hong Kong, the United Arab Emirates, Australia, Singapore, Spain, Belgium, and Germany.
The company's founder and chief executive officer, Will Shu, mentioned in a statement that they were very much looking forward to working with Amazon. Shu stated that similar to his company, Amazon is very "customer-obsessed." With Amazon backing it up, Deliveroo is now set to take on its much bigger rivals, including Uber Eats and Just Eat.
Amazon previously attempted to set up its own UK food delivery company in the past. In 2016, Amazon launched a service called Amazon Restaurants UK.
However, the company was shut down just two years later due to the competition from more experienced players in the market. According to analysts, Amazon has now gone into the buying option instead of creating its own business. This would apparently make a lot more sense for the company, given its vast resources.
Unlike other food delivery services, Deliveroo is pretty much a tech company in its own right. The firm does invest heavily in its machine learning systems and its tech platform, which is mainly the reason why Amazon was so attracted to it in the first place.
There were previous reports that suggested that Amazon was initially looking into buying the UK firm outright. Other reports revealed that Uber had apparently also made an offer.
With Amazon's backing, Deliveroo will likely now be able to expand its offering beyond traditional restaurants. It might also use some of the money to further enhance their machine learning systems to drastically improve delivery times.