Deliveroo has announced that online retailer Amazon is the biggest investor in its latest $575m funding round.
Growing the Deliveroo business
Food courier service Deliveroo operates in over 500 towns and cities across 14 markets. In the UK, the company delivers throughout 100 towns and cities, partnering with over 8,000 restaurants to deliver food to customers ordered on the website or Deliveroo app.
With the latest funding round, the total Deliveroo has raised to date equals $1.5bn. The company said the new investment will contribute to expanding its London based engineering team, reaching new customers through international expansion of its delivery reach, and new innovations in the food sector. These innovations include rolling out its “Editions”, delivery-only dark kitchens that hold a range of collections from a number of restaurants. The investment will also be used to develop new products for a more personalised experience, raise support for restaurant partners, and develop new tools to benefit Deliveroo workers.
Will Schu, founder and CEO of Deliveroo, commented: "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 organisation”.
A growing market
Through this investment, Amazon is re-entering the competitive and growing meals delivery market in a densely populated city, following the closing down of its Amazon Restaurants UK service after two years. The ‘last mile’ has become an increasingly competitive place with clear demand in highly convenient services of this nature, and it’s a strategy that international competitors have taken. For example, in China, Alibaba acquired on-demand food delivery platform Ele.me and integrated it with service guide platform Koubei in 2018 to provide local services.
Shoppers’ expectations are continuously increasing when it comes to getting the goods they want in a quick and easy way. We expect to see more competition amongst retailers to get goods to shoppers in more innovative and creative ways. Last week we reported how Ocado is investing in a robot chef start-up to develop its rapid delivery Zoon business. In terms of Amazon’s investment in Deliveroo, we might see Amazon Prime Now dark stores in the same warehouse as Deliveroo’s dark kitchens, offering a convenient solution for shoppers to order their dinner for tonight whilst stocking up the cupboards at the same time.
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IGD Live 2019
6-7 November, London
Patrick Pondaven, Director UK Consumables at Amazon and Lila Benatoff, Director of Global Partnerships at Deliveroo are presenting at IGD Live on 7th November. Book tickets at the link below.
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