This archive report was first published on 6 July 2019.
Published on July 6, 2019, UK regulators have ordered Amazon to pause its investment in UK food delivery startup Deliveroo while they consider whether the deal amounts to a takeover.
The Competition and Markets Authority (CMA) has raised concerns that the companies may cease to be distinct if the deal moves forward, prompting the regulator to direct the companies to stop any integration of technology and services.
Deliveroo, a top UK restaurant delivery service, is expanding globally after Amazon led a Ksh 57.5 billion investment in the startup in May.
Amazon defended its investment, stating, "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."
"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," Amazon said.
Amazon's investment in Deliveroo is part of its growing focus on food and groceries, following its $13.7 billion purchase of grocery chain Whole Foods in 2017.
