Amazon snuck in a huge announcement right at the end of the week, announcing the company led a G-round for food-delivery service, Deliveroo. Ploughing in just over half a billion ($575m), Amazon joins existing investors T Rowe Price, Fidelity Management and Research Company, and Greenoaks. How will Deliveroo spend the money? According to execs, Deliveroo is planning on expanding the UK HQ and push out delivery-only super kitchens which they call ‘Editions’. To date, Deliveroo has raised $1.53BN, although no-one is exactly sure how this new round affects the valuation of Deliveroo. What does this mean? Uber Eats and friends don’t get such a such an easy ride. Deliveroo is a powerful force, and they aren’t letting go of market share without a fight.
Deliveroo is a large company but they are not as large as Uber. Deliver has 80,000 restaurants, 60,000 riders, 500 towns and cities across 14 markets, including Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, Kuwait and the United Kingdom. In - rough - comparison, Uber Eats is in 30 counties. UberFresh in LA made $3 billion in 2017 alone. While Deliveroo just got a powerful ally it is by no means a done deal that Deliveroo will win the food wars quickly or easily.
- Amazon now has - or is on the way to having - a foothold in key European market meal delivery - is it too far to push people for grocery delivery? Lucky they own Whole Foods…
- Think about your sampling strategy, there may be more opps or willingness to push this now.
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