Amazon takes 16pc bite into Deliveroo after watchdog finally grants approval
◆ Amazon has finally been given approval to buy a stake in takeaway service Deliveroo – 15 months after the deal was first announced, writes Matthew Field.
The US tech titan will buy 16pc of Deliveroo, pumping in $575m (£440m) of cash to help it stay afloat.
Officials at the Competition and Markets Authority had said in April that they would provisionally clear the agreement because Deliveroo had warned it needed cash to stave off collapse during the Covid pandemic.
The CMA’s final report on the investment said that internal documents from Amazon and Deliveroo shareholders suggested they had viewed the deal as a “potential first step towards a full acquisition”.
Stuart McIntosh, who led the watchdog’s inquiry, added: “If [Amazon] were to increase its shareholding in Deliveroo, that could trigger a further investigation.”
Deliveroo said that 30,000 new restaurants had joined its food delivery app so far this year.