Amazon's Deliveroo investment attracts competition scrutiny

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A regulator has the power to block Amazon's investment if it judges that competition in the food delivery sector may be hurt.

An investment in food delivery app Deliveroo by Amazon, worth hundreds of millions of pounds, could be blocked by the competition regulator.

The Competition and Markets Authority said it was looking into any potential breaches of competition rules arising from a fund-raising - firstThen, UK-based Deliveroo sought £450m from investors to fund its expansion plans as it battles rivals, including Uber Eats and Just Eat, for market share in the fast-growing restaurant delivery sector.

The exact sum of Amazon's investment, which gave it a stake in Deliveroo for the first time, was not disclosed. Existing investors T Rowe Price, Fidelity Management and Research Company, and Greenoaks also took part.The company said the latest funding - valuing Deliveroo at around £3bn - would enable investment in its London-based tech team, expansion to reach new customers and development of its delivery-only super kitchens, Editions.More from Business

 

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