Amazon leads $575m funding round in food delivery startup Deliveroo

Deliveroo | Photo: Bloomberg Inc. is leading a $575 million investment in Deliveroo, buying a slice of the fast-growing startup to propel its drive into the European food and groceries business.

The U.S. online retail giant will be joined in the Series G funding round by existing backers T Rowe Price, Fidelity Management and Research Co. and Greenoaks, Deliveroo said in an emailed statement. The London-based startup, which has raised $1.53 billion to date, gets a cash infusion to expand its technology team and network and compete against the likes of Just Eat Plc and Uber Technologies Inc.

Amazon has signaled its growing ambitions in food with Prime Now, which offers deliveries to major British cities within two hours. But it faces stiff domestic competition from the likes of Ocado Group Plc, an online grocery pioneer that licenses its technology to the likes of Kroger Co. and aims to halve that time with a service called Zoom.

Consolidation has also been heating up in the food delivery sector. In one recent deal, NV agreed to acquire the German businesses of Delivery Hero SE for approximately 930 million euros ($1 billion) in December.