In the latest food delivery news, Amazon (NASDAQ:AMZN) announced that the company plans on investing in Deliveroo, a fast-food delivery service that serves as a rival to Uber Eats and DoorDash.
This new round of funding will amount to $575 million and the e-commerce giant will take the lead in making this idea come to fruition. The funding round is slated to close sometime in the coming months, which will bring the total investment in the business — which is headquartered in London — to $1.53 billion.
Deliveroo has yet to reveal the valuation it raised the funding at, but the company was valued at $2 billion when it raised its last round of $482 million back in September 2017. The company was recently seeking for an investment that was based on a valuation that reached roughly $4 billion, per sources that are close to the matter.
Deliveroo has been around since 2013, when it was founded by Will Shu and Greg Orlowski, a former Morgan Stanley investment banker and software engineer respectively. The business has progressed at a furious rate as the brand can now be found in 500 towns and cities in 14 countries around the globe.
The business has roughly 60,000 riders who transport food from 80,000 restaurants directly to homes and offices. Delivery Hero is another such business that can be found in Europe, mostly in Berlin.
AMZN stock is down about 1.3% on Friday following the news.
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