Amazon enters the food delivery market, having led a $575 million Series G investment in Deliveroo.
Deliveroo’s backers now include T. Rowe Price, Fidelity Management and Research Company and Greenoaks in addition to the US e-commerce giant. With this round, Deliveroo total funding till date goes just above $1.5 billion.
The last known valuation of Deliveroo is $2 billion following its previous raise in late 2017; no updated valuation was provided today.
It could be interesting to see how Amazon leverages its relationship with Deliveroo to benefit both parties. Perhaps it could integrate the delivery systems, or its Prime membership service.
What is interesting to see is a new wave of tech giants becoming the next conglomerates through strategic partnerships. Amazon already has the e-commerce platform, its own brand of products, delivery business, and now it looks like it will be entering the food delivery market. We are waiting to hear how this plays out for the tech giant and the food delivery startup.
Read more about the investment here.