Amazon is investing $575 million in food-delivery business Deliveroo
As Amazon’s (AMZN) core e-commerce business is slowing down, it’s looking not only to expand some of its fast-growing businesses but also to invest in other businesses.
In recent years, the company has been making huge investments in other companies. Amazon’s biggest acquisition came in 2017, when it acquired Whole Foods for nearly $14 billion. Last year, it acquired Ring for ~$1 billion.
Now, the e-commerce giant is investing in Uber Eat’s biggest rival in Europe, Deliveroo. The British food-delivery company announced that Amazon was investing $575 million in a Series G financing round. Deliveroo has managed to raise $1.5 billion to date.
Could Amazon eventually tie Deliveroo to its Prime membership?
Deliveroo operates mostly in Western Europe, including the United Kingdom, Spain, Germany, and France. It also has a presence outside Europe, including in Taiwan, Australia, and Singapore, among other markets.
How Amazon plans to use its alliance with Deliveroo isn’t clear yet. The tech giant could enmesh the food-delivery service with its Prime membership, as it did with Whole Foods. However, Deliveroo has other backers, including T. Rowe Price Group and Fidelity Management & Research Company.
Amazon is looking to make its Prime membership irresistible. The company is investing $800 million in the second quarter to make free one-day delivery the standard for its American members.