UK’s competitions watchdog is set to examine Amazon’s investment in Deliveroo, it has announced, putting the brakes on the multi-million pound deal.
However, now the Competitions and Market Authority has has served an initial enforcement order on the deal.
It means Amazon and Deliveroo can continue talks, but cannot merge until they get the thumbs up from the regulator.
Although it is famed for offering one-day delivery to customers across the UK, the firm often outsources the final mile.
Therefore its infrastructure has not been set up for food deliveries, which need rapid and local execution, experts have said.
“This new investment will help Deliveroo to grow and to offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses, and to create more flexible, well-paid work for riders,” founder Will Shu said in May.