United Kingdom competition watchdog Competition and Markets Authority (CMA) is investigating the proposed acquisition of a minority stake in Deliveroo by Amazon.
According to the case filing seen by Marketing, the UK watchdog said the investigation will consider whether it is or may be the case that this transaction between Amazon and Deliveroo may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services. Marketing has reached out to Amazon and Deliveroo for comment.
Prior to this probe, the CMA informed in June 2019 that it has reasonable grounds for suspecting that it is or may be the case that Amazon and Deliveroo have ceased to be distinct, and/or that arrangements are in progress or in contemplation which, if carried into effect, will result in Amazon and Deliveroo ceasing to be distinct.
The CMA also said in an earlier statement that the Deliveroo business has to carry on separately from the Amazon business and the Deliveroo business’s separate sales or brand identity has to be maintained. Both parties have to continue operating as separate entities until the competition watchdog concludes its assessment.
This comes after Amazon led a series G funding where Deliveroo nabbed US$575 million. Led by Amazon, the latest funding round brings the total amount raised to date to US$1.53 billion. Will Shu, founder and CEO of Deliveroo, said then that Amazon has been an inspiration to himself and to the company, as the team looks forward to working with a customer-obsessed organisation.