Friday 17 May 2019 8:21 am

Amazon leads £450m Deliveroo funding round as startup expands London tech team

Deliveroo today confirmed Amazon is leading a $575m (£450m) funding round in the food delivery business as it plans to expand its London engineering team with some of the cash.

Read more: Amazon in talks to invest millions in Deliveroo

The round, including money from existing investors T Rowe Price, Fidelity Management and Greenoaks, takes Deliveroo’s total capital raised so far to $1.53bn.

“We’re impressed with Deliveroo’s approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options,” said Doug Gurr, Amazon UK country manager.

“Will and his team have built an innovative technology and service, and we’re excited to see what they do next.”

Deliveroo plans to use the cash to “invest heavily” in its London tech team as well as expanding to reach new customers.

“Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation,” said founder Will Shu.

“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.”

The British startup will also build “new tools to offer riders flexible and well-paid work”.

The firm has come under pressure over its treatment of couriers, which it keeps at arm’s length as self-employed workers rather than full-time employees – a position cemented in a High Court ruling in December.

Read more: Shortsellers increase bets against food delivery giant Just Eat

However, it remains one of Europe’s best-funded startups and operates across 14 countries including the UK, Ireland, UAE, Singapore, Spain, Germany, France, Belgium and Australia.