UK – British online food delivery firm, Deliveroo has announced that it has raised a total of US$575 million in a Series G funding round led by American online retailer and technology company, Amazon.
The funding round, set to make Amazon the largest investor in Deliveroo, also saw participation from existing investors T Rowe Price, Fidelity Management and Research Company, and Greenoaks.
With the capital, Deliveroo said it will invest in expanding the company’s tech team at its UK Headquarters, expand further to reach new customers, and continue innovating through its delivery-only super kitchens, “Editions”.
This takes the total Deliveroo has raised to date to US$1.53 billion, building on its ambition to better serve customers with convenience and help restaurants grow their businesses.
“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.”
The new investment will contribute to 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.
Deliveroo is planning to develop 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.
“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.”
The investment gives Amazon a better foothold in the European meal kit business, after launching its own service, Amazon Restaurants in 2015.
Amazon Restaurants, however, pulled out of the U.K. last year and is reportedly only available in 25 U.S. cities.
It phases competition from Delivery Hero which is much bigger; all looking to take a lion’s share of meal delivery market, which is set to rise to US$365 billion by 2030, according to Swiss investment bank, UBS.