The UK’s competition regulator has now cleared Amazon.com’s purchase of a 16% stake in the online delivery group Deliveroo, following a provisional nod in June.
- UK regulator clears Amazon to acquire a 16% stake in Deliveroo
- The regulator had initially approved the deal, but changed approach following criticism from Deliveroo’s rivals
- The food delivery market is increasingly competitive
The Competition and Markets Authority (CMA) gave its original clearance in April on the basis that Deliveroo could go out of business without the investment. It changed approach to focus on competition after criticism from rivals including Just Eat Takeaway and Domino’s Pizza.
“Today’s final decision is the result of a thorough examination of this deal and the markets in which Amazon and Deliveroo operate,” said Stuart McIntosh, the inquiry chair.
Amazon led a $575 million fundraising in Deliveroo in May 2019, which the parties called “a minority investment”.
The Amazon.com investment will bolster Deliveroo in the ultra-competitive global race with Uber Eats and Just Eat Takeaway.com to dominate the market for meal deliveries.
It said it would use the funds to offer a “hyper-personalised” service to customers, expand its delivery-only kitchens and develop new technology to help restaurant partners.
“We are delighted that the CMA has concluded its 15-month investigation and that the Amazon minority investment can now go ahead,” a spokesman said.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our content partners at Thomson Reuters. Reporting by Pushkala Aripaka in Bengaluru and Paul Sandle in London. Editing by Saumyadeb Chakrabarty and Edmund Blair.
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