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UK authorities give Amazon 5 days to draw up new plan to acquire Deliveroo

Amazon is interested in investing in Deliveroo to give it a larger stake in the fast-growing restaurant delivery business

AP | PTI  |  London 

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British authorities are asking to address concerns that its plan to buy a stake in food delivery platform could damage competition between businesses that do takeaways and those that deliver groceries.

The Competition and Markets Authority gave the online shopping shopping behemoth five days to come up with legally binding proposals to address the competition concerns identified Wednesday. is interested in investing in to give it a larger stake in the fast-growing restaurant delivery business.

If the deal were to proceed in its current form, there's a real risk that it could leave customers, restaurants and grocers facing higher prices and lower quality services as these markets develop," said Andrea Gomes da Silva, the authority's executive director.

This is because the significant competition which could otherwise exist between and would be reduced." Amazon failed to get its own restaurant delivery business going in the United Kingdom, shutting it down for good late last year. It faced tough competition from Deliveroo, as well as its other rivals in the country such as Just Eat and UberEats. Amazon's service, called Amazon Restaurants, still operates in several US cities.

Founded in 2013, Deliveroo has about 60,000 riders delivering food from some 80,000 restaurants in 14 countries, including Australia, France and Germany.

First Published: Wed, December 11 2019. 18:15 IST
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