Twitter
Facebook
Linked In
RSS
Login or Register
New to InternetRetailing?
Register Now
Internet Retailing
You are in: > Home > Themes

This is your 1 complimentary article for this month

Become a member for unlimited and immediate access.


Register
Already a member? Log in here

CMA launches inquiry into Amazon’s investment in Deliveroo

Linked InTwitterFacebookeCard
Sharelines

CMA launches inquiry into Amazon’s investment in Deliveroo

The UK’s Competition and Markets Authority (CMA) has launched an enquiry whether Amazon is effectively in the process of merging food delivery business Deliveroo into its operations.

 

The CMA says it has “reasonable grounds for suspecting that it is or may be the case that Amazon.com and [Deliveroo parent company] Roofoods, trading as Deliveroo, have ceased to be distinct and/or that arrangements are in progress or in contemplation which, if carried into effect, will result in Amazon and Deliveroo ceasing to be distinct.”

 

The CMA has ordered, in an initial enforcement order published today, that the two businesses are run separately until its investigation is completed. That includes not integrating IT systems, running customer and supplier lists separately and not sharing business secrets or commercially sensitive information any further than would be necessary in the normal course of business.

 

Today’s announcement news comes after restaurant delivery business Deliveroo said in May that Amazon was the largest investor in its latest, $575m, funding round.

 

But Amazon argues that this was not an acquisition but a minority investment, which does not give it control over Deliveroo, and that as a result of that investment it does not operate a restaurant food delivery business. It also argues that it is not a dominant force in the market. Even in retail, it says, the data shows it is significantly smaller than many other retailers.

 

In a statement, Amazon said: “We believe this minority investment will enable Deliveroo to expand its services, benefiting consumers through increased choice and creating new jobs as more restaurants gain access to the service.”

 

A spokesperson for Deliveroo said: “Deliveroo and Amazon have been working closely with regulators to obtain regulatory approvals. There are a number of major companies within the restaurant food delivery sector and this investment will enable Deliveroo to expand, innovate and, we believe, will enhance competition. This investment will help create jobs, help restaurants to grow their businesses and will improve choice for consumers.”

 

Deliveroo was founded in 2013 by William Shu and Greg Orlowski. Today the London-based business works with more than 80,000 restaurants and takeaways, and with 60,000 riders working in 500 towns and cites in 14 markets.

 

Amazon, founded in 1994 by Jeff Bezos, is an Elite retailer in IRUK Top500 research.

 

Image courtesy of Deliveroo

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.

The InternetRetailing Newsletter

A curated update containing news analysis, reports, podcasts and opinion - completely free and delivered three times weekly

Become a Member

Create your own public-facing profile
Gain access to all Top500 research
Personalise your experience on IR.net
Internet Retailing
We are the magazine, portal and research source for European ecommerce and multichannel retail, hosting the board-level conversation for retailers, pureplays and brands across all of our platforms. Join the conversation.

© InternetRetailing Media

Latest Tweet

Internet Retailing
Tamebay
eDelivery
Twitter
Facebook
Linked In
Youtube
RSS
RSS
Youtube
Google
Linked In
Facebook
Twitter