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Amazon reportedly buying a stake in Deliveroo

The UK-based food delivery service will see a funding injection from Amazon, says a report.

Deliveroo

Don't turn around, but Amazon is looking at you.

Matthew Horwood/Getty Images

Amazon is reportedly considering investing hundreds of millions of dollars in Deliveroo, a global food delivery service based in the UK.

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 deal will help make up the $575 million in funding Deliveroo is seeking from investors, according to the report.

Amazon didn't immediately respond to a request for comment.

Sky News had reported back in November 2018 that Deliveroo would likely be seeking between $350 million and $500 million in capital from investors.

Deliveroo operates in 100 cities across the UK, as well as in Australia, Germany, the US, France, Singapore, Hong Kong, Belgium, Ireland, Italy, the Netherlands, Spain, Taiwan, Kuwait and the United Arab Emirates.

Amazon had killed off its own UK-based food delivery service in November 2018 after two years of operation.

Amazon Restaurants UK, which provided one-hour food delivery, closed down in December in the face of competition from Deliveroo and Uber Eats.

Amazon originally launched the service to Prime customers in Seattle in 2015, later expanding to other US cities.