Amazon puts its faith in Deliveroo with huge stake

Deliveroo has raised US$1.53 billion to date

Deliveroo has raised US$1.53 billion to date

Neither company revealed the size of the investment, but said Amazon was leading the £575m (£450m) round, which also included investment from T. Rowe Price, Fidelity Management and Research Company, and Greenoaks. The new Series G funding takes the total Deliveroo has raised to date to $1.53 billion. The company has been heavily criticised for its treatment of the 60,000 riders who make its deliveries.

Although each exact figure was not given, Amazon is the biggest investor in the round.

Deliveroo founder and CEO Will Shu said the investment would enable the group to further expand its reach, develop its technology and pursue innovations such as the launch of its own kitchens that can be rented to restaurants to meet demand.

Deliveroo was last valued at just over $2bn in September 2017.

It comes in the wake of Amazon pulling back on its own restaurant delivery business in the United Kingdom, and closing the London arm of its the service in December past year.

The company says its Editions platform helps restaurants expand to new areas, identifying cuisines that people want but are not available locally and then investing in restaurants to set up in these areas.

"We're impressed with Deliveroo's approach and their dedication to providing customers with an ever-increasing selection of great restaurants, along with convenient delivery options", Doug Gurr, Amazon UK country manager, said.

"Will and his team have built an innovative technology and service, and we're excited to see what they do next".

Deliveroo would be better able to compete with rivals such as Uber Eats and DoorDash thanks to the funding injection, a Thursday report from Sky News pointed out.

The latest available results show Deliveroo's global sales more than doubled in 2017 to £277m but its losses continued to increase, doubling to almost £185m as the company continues to invest in global expansion.