Amazon intends to invest a substantial proportion of the $575 million funds that Deliveroo raised, into the gig economy.
Amazon.com Inc intends to invest in UK food delivery app Deliveroo as part of a $575 million fundraising. The world’s biggest online retailer is in talks with Deliveroo, reported Sky News citing sources.
Deliveroo is likely to unveil the deal in the coming days.
If a deal goes through, Amazon is likely to invest a substantial proportion of the funds raised by Deliveroo in the gig economy, said Sky News.
While Amazon declined to comment on the Sky News report, Deliveroo was not immediately available for comment.
In September 2018, The Telegraph had reported that Amazon had made two preliminary exploratory approaches for Deliveroo.
According to Deliveroo’s website, it operates in more than 100 towns and cities across the UK, and works with more than 8,000 restaurants. Its app uses an algorithm that uses “powerful predictive technology” to determine the most efficient way of distributing orders based on the location of restaurants, riders and clients.
Deliveroo’s Editions platform helps restaurants expand to new locations by identifying cuisines that people want but are not available locally; it then invests in restaurants to set up in these areas.