Deliveroo has become a powerhouse in the food delivery game, with a valuation of around $2 billion. Needless to say this has meant there's been some interest from larger entities that will want to get in on the lucrative business of having KFC or Wagamama delivered straight to customers' homes. Word is that both Uber and Amazon have expressed interest in acquiring the company for themselves.
According to sources speaking to the Daily Telegraph, Amazon has been involved in two rounds of negotiations with Deliveroo. One almost two years ago, and another within the past nine months. meanwhile the Financial Times says that Uber has approached Deliveroo with the intention of taking over, though in both cases investors claim Deliveroo wouldn't settle for anything less than $4 billion.
While Amazon's response isn't known, sources from Uber claim that the company was not willing to spend more than $4 billion - despite ambitions to expand its food delivery service throughout Europe.
The fact Uber wants in is no surprise. It already has its own food delivery arm in Uber Eats, but Deliveroo was around first - at least in this country. Bringing Deliveroo into the fold not only deals with a rival company, but also helps Uber Eats expand to parts of the country with an established Deliveroo presence. Amazon may be a surprise to some, but it has been operating Amazon Restaurants in certain areas of London. Given its limited scope at the moment, grabbing Deliveroo would be a massive boon to expand its operations across the UK and other parts of the world almost overnight.
It would be interesting to see how regulators would react to an attempted takeover by Uber. There aren't that many companies offering takeaway services , certainly not after JustEat bought out Hungryhouse earlier this year. If Uber were to try and takeover its biggest rival, I imagine words would be had. Amazon, not so much, seeing as how small its existing food delivery operations are.