On Tuesday, Britain’s competition regulator cleared Amazon’s purchase of a 16 percent stake in online delivery group Deliveroo, following a provisional nod in June.

In April, the Competition and Markets Authority (CMA) gave its original clearance on the basis that Deliveroo could go out of business without the investment. It changed approach to focus on the competition after criticism from rivals including Just Eat Takeaway and Domino’s Pizza.

Stuart McIntosh, the inquiry chair said that “Today’s final decision is the result of a thorough examination of this deal and the markets in which Amazon and Deliveroo operate,”

The company led a $575 million fundraising in Deliveroo in May 2019, which the parties called “a minority investment”.
The Amazon investment will support Deliveroo in the global race with Uber Eats and Just Eat Takeaway.com to dominate the market for meal deliveries.

It said it would use the funds to offer a “hyper-personalized” service to customers, expand its delivery-only kitchens, and develop new technology to help restaurant partners.

A spokesman said that “We are delighted that the CMA has concluded its 15-month investigation and that the Amazon minority investment can now go ahead.”

Source: https://gadgets.ndtv.com/internet/news/amazon-deliveroo-deal-cma-uk-regulator-approval-for-16-percent-stake-purchase-2274083

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