Uber Eats to face competition from Deliveroo after investment from Amazon

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Deliveroo riders.
Deliveroo riders. PHOTO/COURTESY: Engadget

By Edna Mwende

Competition in the food delivery service has been taken up a notch after Amazon invested in British food delivery company Deliveroo; a competitor of Uber Eats.

Deliveroo said that it raised $57.5 million (approximately Ksh 5.8 billion) from a number of investors led by Amazon which will become Deliveroo’s largest investor; though it did not disclose how much Amazon put in or how large a stake it acquired.

Reports by CNBC indicate that share prices of Uber Eats and Just Eat, another food delivery service dropped after the announcement of the investment.

Will Shu, Founder and CEO of Deliveroo in a statement 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.

Mr. Shu continued to say that this investment will help the company expand its operations in its London headquarters, develop its technology as well as fund new initiatives, such as delivery-only kitchens and the creation of jobs.

Deliveroo, which has its headquarters in London, has 60,000 riders who deliver meals to over 80,000 restaurants and take away outlets in 14 countries which include, France, Germany, Kuwait, Singapore and Hong Kong, Italy, and Australia.

“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,” said Doug Gurr, Amazon UK Country manager in the statement by Deliveroo.

He continued to say: “Will and his team have built an innovative technology and service, and we’re excited to see what they do next.”

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