US e-commerce giant Amazon is taking a big chunk of the food delivery market of Europe after the company led a massive sum of $575 million investment in the food delivery startup Deliveroo.
This news was first broken by Sky yesterday, and the latest Series G round into Deliveroo was confirmed in an early U.K. morning announcement from the food delivery startup, which revealed that the existing investors into the company which include the likes of T. Rowe Price, Research Company, Fidelity Management, and Greenoaks have also taken part in the Series G round of investment into the company. This recent infusion of cash will take the total sum raised by Deliveroo to just over $1.5 billion raised to date. The startup company was already valued at more than $2 billion which happened after the Series F round of investment in late 2017. Currently, there are no data regarding the updated valuation of Deliveroo and the company is yet to reveal any details regarding its valuation today.
Deliveroo is a London-based food delivery startup company that has operations across 14 countries, which include countries such as the U.K., Spain, Germany, and France in Europe as well as Taiwan, Australia, UAE and Singapore among non-European countries. Across these markets, Deliveroo claims that it is actively working with a network that spans more than 80,000 restaurants and it has a fleet of more than 60,000 delivery people. The startup has currently 2,500 people as its permanent employees.
It has not been made immediately clear as to how Amazon plans to use this new strategic partnership with Deliveroo. The company might choose to integrate the startup company’s service with its Prime membership, although it should be said that this is not Amazon’s first venture into food delivery. The American e-commerce giant had closed its Amazon Restaurants U.K. takeout business just last year after it had struggled to compete with companies such as Uber Eats and Deliveroo. The service currently remains as operational in the U.S region.
Will Shu, who is the founder and CEO of Deliveroo, has said about their strategic partnership with Amazon that is has been an inspiration to him personally and to Deliveroo, and they are looking forward to working with Amazon and their customer-centric organization.
Shu also went on to state that this recent infusion of cash into the operations of Deliveroo will be spent towards initiatives that include growing the engineering team of Deliveroo’s London-based operations as well as expanding the startups reach and it will start focusing on new products such as the cloud kitchens which can cook up delivery meals in a more cost-efficient and faster way.