Sunday, May 19, 2019

Amazon Invests in U.K. Food-Delivery Startup Deliveroo


          Amazon has decided to invest in British food-deliver company, Deliveroo which is becoming one of the startup's biggest investors. This is indicative of a large interest in a new sector for these chains. This is becoming bigger with other brands such as Postmates or Grubhub who also delivers food from restaurants straight to consumers' doors. This investment reflects Amazon's "fascination with finding ways to get all kinds of goods in the hands of the consumers as quickly as possible." Amazon has been experimenting with new technology and delivery services and now has decided to invest to further their company goals. Since consumers nowadays are increasingly expectant for their meals and groceries to arrive as quickly as their other goods, this will account for more than 10% of restaurant sales by 2022. However, it was noted that "food delivery so far as been largely unprofitable" due to fees and coordination of drivers. Grubhub Inc., a delivery service has fallen nearly 60% since last year while profits keep dropping. By analyzing what other companies have decided to do with delivery of food services, companies can try to market differently to the consumer group or rebrand themselves as more convenient to gain more customers.

1 comment:

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