Amazon leads £450m investment in Deliveroo
US online retailing giant Amazon has made a huge investment in London-based food courier company, Deliveroo.
Although the exact amount was not revealed, Deliveroo confirmed that Amazon was the lead contributor in a new $575 million (£450m) fundraising exercise.
The Series G preferred shared funding round, alongside existing investors T. Rowe Price, Fidelity Management and Research Company, and Greenoaks.
The company, which was set up in 2013, said the total it has raised to date comes to $1.53 billion.
Deliveroo said it will use the money raised to continue to build its world-class service, bringing customers the food they want whenever and wherever they want it, offering even more work for riders, and helping restaurants to grow their businesses by reaching new customers.
Specifically, the new investment will contribute to:
- Growing Deliveroo's engineering team based in its London headquarters, creating more high-skilled jobs and building on London's growing reputation as a tech hub.
- Expanding Deliveroo's delivery reach in order to continue offering its service to new customers.
- New innovations in the food sector, for example through delivery-only super kitchens "Editions", as well as new formats that will help restaurants expand to new areas at a lower cost and lower risk, bringing more choice to local neighbourhoods.
- Development of new products for customers to offer a more personalised experience, increased support for restaurant partners, and new tools to offer riders flexible and well-paid work.
"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”, said Will Shu, founder and CEO of Deliveroo.
"Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation.
"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."
Amazon, which also launched its own food delivery service in UK in 2016, but closed it two years later, said it was impressed with Deliveroo’s business model.
"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. "Will and his team have built an innovative technology and service, and we're excited to see what they do next."