Amazon has been revealed as the biggest investor in Deliveroo’s latest funding round which totalled £450 million.
Although the size of Amazon’s investment has not been disclosed, it has led many market analysts and commentators to believe the world’s largest retailer is eyeing a takeover of the delivery company in the future.
Deliveroo, which has raised more than $1.5 billion since it launched in 2013, said it will use its latest investment to improve its service and expand internationally.
Speaking to the BBC, Louise Dudley, a fund manager at Hermes, said: “They [Amazon] weren’t able to compete within the market so they’ve gone for the buying option instead. They’ve got the money behind them to do that.
“It [Deliveroo] is not just a food delivery company it’s very much a tech company. They have this tech platform that is seen is very attractive. They are able to expand into new areas and think about how people’s tastes are evolving and be able to predict what stores will be successful. That predictive growth is very attractive to Amazon”.
Reports suggest Amazon has attempted to buy Deliveroo outright in the past, while Uber also had been tipped to make a move before launching its own Uber Eats business.