LONDON, ENGLAND - FEBRUARY 16: A Deliveroo rider cycles through central London on February 16, 2018 in London, England. Millions of part-time and flexible workers in the so-called gig economy are to receive new rights including sick and holiday pay under a new government reform. Photographer: Jack Taylor/Getty Images Europe

Amazon powers up Deliveroo to eat into global fastfood deliveries – The Wall Street Journal

It turns out that Amazon, which is constantly coming up with ways to scale up its revenues, thinks that Deliveroo's energetic riders can help fuel its bottom line.

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17 May 2019, 1:43 pm

EDINBURGH — Deliveroo cyclists, huffing and puffing, up steep streets with big bags of food on their backs are a common feature in the Old Town where I live. Delivering pizza and Indian take-aways looks like a job that's gruelling physical work for only the fittest in their prime. It turns out that Amazon, which is constantly coming up with ways to scale up its revenues, thinks that Deliveroo's energetic riders can help fuel its bottom line. Amazon has injected huge sums into the company in the expectation that it can grab market share from Uber Eats and others in the fast-food home delivery sector. Although Deliveroo takes a large slice of commission from restaurants for its service, and also levies a fee on hungry customers, it isn't a profitable business – yet. Investors in Deliveroo rivals are clearly concerned that Amazon will make things tougher in the sector, with Just Eat and Delivery Hero losing ground on the news of the Amazon investment. Amazon is in the BizNews portfolio. – Jackie Cameron