Amazon has adopted a new strategy in an attempt to generate success in the UK food delivery market. By acquiring a minority share in Deliveroo – the fastest growing food delivery business in the UK – Amazon has become a growing influence within the market place. Deliveroo has grown as a business at a prolific rate thanks to a strong business structure driven by technology and innovation. Consequently, the company appears to be a suitable ally for Amazon to join in the food delivery market. Ultimately, investing in Deliveroo will give Amazon access to the food delivery market in an alliance with one of the markets leading players; together the duo could acquire a greater market share and become the largest food delivery service in the UK.
The Amazon business model is predicated on being one of the most innovative companies across the globe. Combined with the company’s significant amount of capital, the Bezos run firm has a sturdy foundation for innovating in food delivery, giving the company a competitive advantage. Amazon has already conducted test flights for autonomous driving vehicles for the delivery of small packaged goods within e-commerce branch of the business. If such technologies are integrated within the food delivery market, Amazon and Deliveroo would have won a significant advantage over the competition.
The acquisition of a minority share of Deliveroo is not the first time Amazon has attempted to infiltrate the food delivery market. Amazon launched its own services in the US during 2015 and the following year in London. However, as a result of a highly competitive marketplace the business venture was unsuccessful and ended with Amazon terminating the venture. More recently, UK regulators have prevented Amazon from progressing in its newly formed partnership with Deliveroo. The deal has raised concerns with competition authorities and integration of the companies has been inhibited until a decision is made. Until then Amazons access to the UK food delivery market has been obstructed.