Deliveroo secures US$575 million funding from Amazon
The e-commerce company is set to be the largest investor in Deliveroo’s series G funding round.
Deliveroo announced that Amazon is leading a new US$575 million Series G preferred shared funding round, alongside existing investors T. Rowe Price, Fidelity Management and Research Company, and Greenoaks.
This takes the total Deliveroo has raised to date to US$1.53 billion. With this funding, the company will invest heavily in expanding its tech team at its UK Headquarters, expand further to reach new customers, and continue innovating through its ‘Editions’ super kitchens.
“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,” Deliveroo’s founder and CEO Will Shu explained.
“Will and his team have built an innovative technology and service, and we’re excited to see what they do next,” Amazon UK country manager Doug Gurr said.
Reacting to the news, investment firm CAT Rock Capital says Amazon’s funding in Deliveroo “underscores the significant strategic interest in online food delivery space and highlights opportunity for Just Eat’s Board to create value for all shareholders by participating in global consolidation.”
“While we are surprised that Amazon chose to back one of Just Eat’s small and cash-burning competitors, we are confident that Just Eat’s significant strategic value will be unlocked if the Board engages with the many potential strategic partners available to the Company,” Cat Rock Capital Management LP founder and managing partner Alex Captain said in a statement.