Amazon Targets Uber Eats
Amazon fired shots at Uber Eats last week after dumping a whopping $575m worth of funding into UK-based food delivery company, Deliveroo. Is any business safe from Amazon these days?
The monster investment makes Amazon the largest stakeholder in the business which has been gaining some serious traction in the fast growing global takeaway market. Deliveroo has said that the investment will go towards expanding its engineering team, delivery reach and the development of new products like its deliver-only kitchens. Exciting stuff!
Deliveroo currently operates in 500 cities, spanning 14 countries…and it’s about to get bigger. Meanwhile, Uber Eats, is now shivering in its boots as its main rival gets backed by some considerable firepower. Rivals, Just eat and Uber, fell 8% and 1.3% respectively on Friday after news of the investment hit the markets, illustrating the importance of the deal for the industry.
As for Amazon, this is not its first attempt to break into the food delivery market. Its first effort in 2015 ended in failure after competition from Deliveroo and Uber Eats left it little market share to snack on, eventually leading to its demise. This time around the retail behemoth is going about it in the right way by taking a leading stake in one of the top players…But how will Uber Eats beef up its business to stay in the game?
We’ll just have to wait and see.
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