Amazon leads $575M funding round for Uber Eats competitor Deliveroo

(Deliveroo Photo)

Amazon’s restaurant delivery business pulled out of the U.K. late last year, and now the tech giant is backing one of its former rivals.

Amazon is leading a $575 million funding round for Deliveroo, a U.K.-based food delivery company, that competes with Uber Eats and others. The funding round, which also included big-name investors like T. Rowe Price, Fidelity Management and Research Company and Greenoaks, brings Deliveroo to more than $1.5 billion in lifetime funding.

Deliveroo said it will use the funds to build out its engineering team at its London headquarters and expanding its delivery reach to offer the service to new customers. Deliveroo said it will also contribute to new innovations in the food sector, including new restaurant formats and “delivery-only super kitchens.”

“This new investment will help Deliveroo to grow and to offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses, and to create more flexible, well-paid work for riders,” Deliveroo founder and CEO Will Shu said in a statement.

The six-year-old company employs 2,500 people around the world. It has more than 60,000 couriers delivering food from more than 80,000 restaurants in 14 countries.

The restaurant delivery business is a competitive one with companies like Deliveroo, Uber, GrubHub, Postmates, Amazon and many more battling it out. Amazon and Deliveroo are both listed as primary competitors to Uber Eats on the company’s IPO prospectus filed last month.