Amazon and Deliveroo partner for free deliveries

Deliveroo and Amazon have partnered to offer free deliveries to Prime customers on certain orders.

Customers in the UK and Ireland are eligible to use the offer on orders over £25 from restaurants and supermarkets.

The move represents the first consumer facing partnership between the two companies since Amazon first invested in the company in 2018.

The Competition and Markets Authority (CMA) approved Amazon’s 16 per cent stake in the food delivery company in August 2020, ruling that the partnership will not lead to a “substantial lessening of competition”.

The news comes after Deliveroo appointed ex-Amazon executive Devesh Mishra as chief product and technology officer last month, who will have responsibility for the company’s technology organisation, which includes Deliveroo’s engineering, data science, design, and product development functions.

Deliveroo has reported strong growth ahead of expectations despite restrictions easing; the company’s orders doubled to 148 million in the first half of the year, from 74.5 million orders during the same period of 2020.

The food delivery company has also been active in terms of forming other partnerships; Deliveroo and Boots UK announced a new delivery partnership launching at 14 pilot stores across the UK in August.

Amazon has also continued to rapidly expand into the UK food business; the BigTech giant opened its fifth Amazon Fresh grocery store in the UK in June.

“The CMA found, on a realistic prospect basis, that the parties would have the ability to bundle Deliveroo Plus and Amazon Prime, and could use this strategy to foreclose Deliveroo’s competitors,” said a CMA spokesperson in August 2020.

“The CMA also found, however, that any incentive to engage in a foreclosure strategy arising from the transaction would be insufficient to result in a realistic prospect of an SLC [substantial lessening of competition].”

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