While we already know that Uber and Amazon have been rivals for a quite amount of time in the field of online food delivery, Amazon has taken a big step to take down Uber, by investing USD 575 million in Deliveroo. Deliveroo is one of the major food delivering company in Europe and is currently having branches in over 500 towns and cities in around 14 countries and territories. While Deliveroo has clearly denied that Amazon has not yet bought the company, it has only funded the company, which is going to be used for expanding branches in the UK, Uber is clearly seen to be in a bit of trouble.
Amazon previously used to have Amazon Restaurants back in the US during 2015, which was even expanded to the UK; but the company had to shut down the food business after 2 years due to various rivals in the market. It was reported by The Financial Times that Uber was about to buy Deliveroo last year but failed to do so.
It was even being heard that Amazon had also offered to buy Deliveroo in 2018 but was unable to do so due to no mutual understanding. Meanwhile, as we can see that Amazon has clearly made its move in the chess game by funding Deliveroo, it still remains unclear whether the company would be able to buy Deliveroo. If later happens, then Uber is going to face a tough challenge in the UK food delivery business.
According to a report by Sky News, Amazon has offered in funding the company after two unsuccessful attempts to buy it, which seems to be a solid reason for such a move. Apart from this, it is known that Deliveroo has quite a few rivals in the business in every country, the UK being on the top with Delivery Hero.
Another thing which has hampered Deliveroo in the past was the number of partners that Delivery Hero has as compared to Deliveroo. The former has around 250,000 restaurant partners while Deliveroo has only 60,000. With the help of the money from Amazon, Deliveroo would be able to make its stand in the UK food market.
There have been rumors regarding that Amazon and Deliveroo would be making a joint pact of ordering and delivering food with the help of Amazon Echo. Just imagine, telling Alexa to order food from your favorite place and she would do that! Now that would be something interesting. We cannot tell yet if this would happen or not, but we hope it happens in the future. Meanwhile, Uber has to find a way to revert back in the market and be a tough competition for Amazon. Let’s see who would be the first one to say Checkmate!