Amazon has received the green light from the Competition and Markets Authority (CMA) to buy a minority stake (16%) in U.K. food delivery start-up, Deliveroo.
In 2019, just after Deliveroo raised a $575 million funding round led by Amazon, the U.K.’s Competition and Markets Authority halted the acquisition deal, citing potential anti-competitive implications.
CMA was concerned about the potential for the deal to prevent Amazon from re-entering the online restaurant food market. The company had previously operated an online takeout business called Amazon Restaurants but subsequently exited the market last year.
However, with the approval, Deliveroo will use the investment to increase choice and value for customers, support for restaurants and will be able to offer more riders the flexible work they value as the company expands.
Deliveroo is an online food delivery company, which is based in London, England. It operates in two hundred locations across the United Kingdom, the Netherlands, France, Belgium, Ireland, Spain, Italy, Australia, New Zealand, Singapore, the United Arab Emirates, Puerto Rico, Hong Kong and Kuwait. A subsidiary operation, Deliveroo Editions, focuses on developing a network of ghost kitchens—kitchens located off-site from restaurants for the preparation of delivery-only meals.