17th May 2019
Amazon, the mail order company which avoided (for a second year in a row) paying tax on its $11.2bn profit, is investing hundreds of millions in Deliveroo, which will be used to finance a growth in its ‘dark kitchens.
Amazon is leading a new $575m (£450m) Series G preferred shared funding round in Deliveroo together with existing investors T. Rowe Price, Fidelity Management and Research Company, and Greenoaks. This bring the total Deliveroo has raised to date to $1.53bn.
The company stated: “With this funding, Deliveroo will 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. 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.”
Will Shu, founder and chief executive of Deliveroo, 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 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 UK country manager Doug Gurr added: “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. Will and his team have built an innovative technology and service, and we’re excited to see what they do next.”
Amazon is the world’s largest internet business, with a market value of c$920bn. Its diversification beyond retailing into the provision of a vast range of services has propelled it into the rarefied ranks of companies worth close to – and on brief occasions more than – $1trn.