UK Regulation Ceases Amazon Led Fundraising Deliveroo

by StartupWorld Staff         

Britain’s Competition and Markets Authority (CMA), as part of the competition regulation, bring to a halt on Amazon’s $575 million investment in Deliveroo. 

CMA had, on Friday, declared that it had distributed an initial enforcement order (IEO). Despite the red signal, the companies are not restricted in having the discussion further. The watchdog will move with an investigation against the fundraising.

The Amazon led fundraising held in May was the company's move to enter into online meal delivery business. Earlier, the first attempt was a failure as the Amazon restaurants shut down. Britain, now, witnesses the tightest competition in the online food delivery business as Deliveroo is competing with Uber Eats and Just Eat in Britain. This indicates to a worldwide competition.

"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.", an Amazon spokesperson said. 

This break from CMA will restrict the companies from transferring the staffs each other as the investigation progresses. Both companies, possibly, may overcome the halt if the inquiry finds each company, already, are merged financially. 


“Both companies have been working closely to get through the legal procedures,” Deliveroo said as a reply to the latest upheaval.

Despite the fundraising, in May, said to be  $575, both companies are yet to disclose the actual figure of Amazon’s total funding contribution. 

The vigilance had become tough as Andrew Tyrie joined as the Chairman of CMA in 2018. As a part of the new movement, the Authority, then, had blocked significant business groups and had undergone investigation on significant companies to regulate the increasing competition in the market. 

As CMA is going to step into a full investigation, both Amazon and Deliveroo are waiting for the green signaling.


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