Posted on May 17, 2019 by staff

Amazon to lead £450m investment in Deliveroo


UK food tech start-up Deliveroo is to raise $575 million in a funding round led by Amazon.

The company’s ‘gig-economy’ app allows restaurants to offer home delivery via a network of drivers and cyclists.

Founded in 2012, this latest round takes the total raised by the tech company to $1.53 billion.

Existing US investors T Rowe Price, Fidelity Management and Research Company and Greenoaks also contributed to the fund raise in the food delivery service.

London-headquartered Deliveroo said the significant investment would help it expand its engineering team.

It also hinted at ‘new innovations in the food sector’, including delivery-only kitchens which it calls ‘Editions’, designed to help its restaurant clients to expand at lower cost and risk.

For its delivery riders, who use the Deliveroo app to pick-up and deliver orders, the company said it is also working on new tools to improve the flexibility and pay of the work.

Will Shu, founder and CEO of Deliveroo, said Amazon and been a personal inspiration to him and the company, and that he was ready to work with 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,” he said.

Doug Gurr, Amazon UK country manager 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.”

Deliveroo currently operates in 14 countries and works with over 80,000 restaurants.

The sum is one of Amazon’s largest outside of the US, and follows a series of international investments including $65m in Mumbai-based Acko General Insurance, $30m in Tel-Aviv-based semiconductor company Wiliot and approximately $346m in French robotics firm Balyo in the last year alone.

The investment is set to be completed within the coming months.