How a fresh cash infusion from Amazon will help Deliveroo

…Improvements to the firm’s engineering team could make Deliveroo’s app easier to use for both consumers and restaurants. For example, the firm’s engineering team could improve the search and discoverability functions on the app. And for restaurants, Deliveroo’s engineers could look to make improvements to the app that would speed up the new restaurant onboarding process.

Such improvements could leave Deliveroo better positioned in the UK food delivery market against UberEats, its top rival.UberEats and Deliveroo are locked in a battle for second place in the UK’s food delivery market: Uber’s food delivery arm had only about 50,000 daily active users in the country compared with Deliveroo’s 44,000, though both are dwarfed by rival Just Eat’s nearly 500,000, per Priori data cited by the Financial Times. Whatever tech improvements come out of the funding round could help Deliveroo edge out Uber Eats for second place in the UK food delivery space.

The bigger picture:While the firms said the funding would be used for improvements to Deliveroo’s platform in Europe, the investment from Amazon could signal an eventual expansion to the US.


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