Amazon stake in Deliveroo to face CMA probe

The Competition and Markets Authority (CMA) is investigating the anticipated acquisition by of Roofoods Ltd (trading as Deliveroo), and today has announced it has referred the proposed investment for an in-depth investigation.

The CMA said earlier this month that the deal could cause higher prices and lower quality services for British consumers.

Amazon was the lead investor in a £442m funding round, taking a stake in Deliveroo of just over one-sixth.

A spokesperson for Deliveroo said, “Deliveroo has been working closely with the CMA and will continue to do so. We are confident that we will persuade the CMA of the facts that this minority investment will add to competition, helping restaurants to grow their businesses, creating more work for riders, and increasing choice for customers.

“Deliveroo is a British company operating right across the country and this investment will be particularly beneficial to the UK economy.”

An Amazon spokesperson said, “A homegrown UK business like Deliveroo should have broad access to investors and supporters.

'Amazon believes that this investment funding will lead to more pro-consumer innovation by helping Deliveroo continue to build its world-class service and remain competitive in the restaurant food delivery space by creating more highly skilled jobs, innovating in the restaurant food delivery sector, and developing new products for customers.”

The CMA said the investigation would have a deadline of 11 June next year.