Amazon’s bid to compete with Uber in U.K. approved
British regulatory authorities have reportedly cleared Amazon’s purchase of a minority stake in an online U.K. food delivery startup.
According to CNBC, a $575 million Series G funding round in Deliveroo which Amazon initially led in May 2019 has received final approval from the U.K.’s Competition and Markets Authority (CMA). The CMA halted the investment in July 2019 and initiated a formal investigation of potential competitive conflicts in December 2019.
Amazon will receive a 16% stake in Deliveroo, which has raised $1.53 billion to date. A corporate spokesperson told CNBC Deliveroo will use the new infusion of cash to “increase choice and value for customers, support for restaurants, and…offer more riders the flexible work they value as the company expands.”
Launched in 2013, Deliveroo competes in the U.K. with Uber Eats and other on-demand food delivery services. The company also operates in global markets including Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, and Kuwait, as well as the U.K.
In addition to providing on-demand online delivery for restaurants, Deliveroo offers services in certain markets such as delivery-only kitchens and consumer storefronts. In December 2019, it opened its first restaurant, in Hong Kong.