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UK: Amazon offers loan to Deliveroo

By  |  January 14, 2020

Amazon has offered Deliveroo a loan after a UK probe into the food-delivery startup’s last funding round threatened a cash crunch, reported Bloomberg. 

Without the backing from Amazon, Deliveroo ran the risk of running low on capital, the people said. While the size of the loan is unclear, the London-based company has significant funds to continue operating, they said, asking not to be identified because the matter is private.

An Amazon spokesman referred to an earlier statement that said Deliveroo should have “broad access to investors and supporters,” and declined to comment further.

Amazon led a US$575 million investment into Deliveroo in May. It was frozen in a surprise move by the Competition and Markets Authority, which has stated that Amazon’s bid to buy a minority holding in the company had the potential to damage competition in restaurant and grocery delivery. The UK competition regulator announced last month that it would conduct an in-depth investigation of Amazon’s approximately US$500 million investment and will rule on the deal by June 11.

Full Content: Bloomberg

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