Amazon is becoming the biggest nightmare of Uber. The company announced on Friday (17) an investment of $ 575 million in Deliveroo, a household food delivery company.
The move intensifies competition between Amazon and Uber, which operates the Eats service. Last year, the Financial Times reported that Uber was interested in buying Deliveroo, but a disagreement put an end to the talks.
The investment should represent another blow to Uber, which has been suffering losses since its initial offering of shares. On Friday (17), at the close of the trading session, the company’s stock was sold at almost US $ 42, down 2.53%.
After the announcement, a Bloomberg columnist went on to say that Amazon “is going to have dinner at Uber.” “The main difference between Amazon / Deliveroo and Uber / Uber Eats is that, in general, the people who distribute food to Uber are not the same people who carry passengers,” says Alex Webb. routing, making it more likely that drivers and deliverers will migrate to a rival that can guarantee more income. “
According to Sky News, Amazon had tried to buy Deliveroo twice before this week’s investment. Deliveroo is also expected to deliver Amazon Prime Now products.
In a statement, Deliveroo said it will use the money to expand its engineering team in the UK, expand its scope of delivery and also develop new products such as its exclusive delivery kitchens, scattered environments in London to optimize shipping time.
Currently, Deliveroo operates in 500 cities and counties in 14 countries such as France, Australia, and Germany. Since it was founded in 2013, the company has raised more than $ 1.5 billion.