Amazon’s restaurant delivery service in the UK folded in late 2018, because it couldn’t keep up with rivals like Deliveroo. Now, the corporation is subscribing to the old adage “if you can’t beat ’em, join ’em” by becoming Deliveroo’s largest investor for a funding round that’s seeking to raise $575 million. While neither company has revealed how much Amazon is giving its former rival, being the biggest investor in the round most likely means the tech giant is infusing the service with hundreds of millions of dollars in fresh funds.
Amazon’s restaurant delivery service launched in the US in 2014 and eventually made its way to London in 2016. While it only lasted a couple of years in the UK, it’s clear that the company still believes there’s money to be made in the food delivery industry. According to British organization Sky News, Amazon even tried to buy Deliveroo outright — twice.
Deliveroo will use the money it raises from the funding round to expand to new areas and gain new customers. It also intends to introduce new products for a more personalized experience and to help partner restaurants reach a new audience.