The U.K.’s Deliveroo has announced that Amazon is leading a new $575 million series G preferred shared funding round. The latest round of cash will mean Deliveroo has raised more than $1.5 billion to date. What’s notable about Amazon’s investment in the U.K. company is that until last December, Amazon was a major competitor to Deliveroo.
Amazon had competed with Deliveroo and Uber Eats with its food delivery service called Amazon Restaurants. However, after four years of operations in the U.K., Amazon Restaurants found it couldn’t keep up with the two players, so it closed its doors on December 3, 2018.
But with Amazon leading the $575 million investment round in Deliveroo today, the company is clearly showing it’s still very interested in the food delivery business. Announcing the Amazon-led round of investment, Deliveroo CEO Will Shu said:
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 organization. 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.
It’s not clear how much if the $575 million series G funding round is coming from Amazon, but it’s likely to be at least a few hundred million. Other investors in the round include T Rowe Price, Fidelity Management and Research Company, and Greenoaks. Deliveroo says it will use the new funds to invest “heavily in expanding the company’s tech team at its U.K. headquarters, expand further to reach new customers, and continue innovating through its delivery-only super kitchens, Editions.”