// The CMA will investigate Amazon and Deliveroo’s partnership
// The watchdog said the two parties failed to offer any undertakings to them by the December 18 deadline
Amazon’s tie-up with food delivery service Deliveroo is being investigated by the competition watchdog over concerns that the deal could lead to customers and businesses facing higher prices and poorer service.
The CMA launched a thorough phase two probe after Amazon failed to address “initial concerns that their investment in Deliveroo could be bad for customers, restaurants and grocers”.
On December 11, the regulator called on Amazon and Deliveroo to offer undertakings to address its concerns that any deal between the partnership may weaken competition.
READ MORE: Nike’s severs ties with Amazon as part of direct-to-consumer push
In its decision, the CMA said the two parties failed to offer any undertakings to them by the December 18 deadline.
Amazon acquired a minority shareholding in food delivery platform Deliveroo in May. Deliveroo founder and chief executive Will Shu said at the time that it would “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”.
“Deliveroo has been working closely with the CMA and will continue to do so,” a Deliveroo spokeswoman said.
“We are confident that we will persuade the CMA of the facts that this minority investment will add to competition, helping restaurants to grow their businesses, creating more work for riders, and increasing choice for customers.”
An Amazon spokesman said: “A homegrown UK business like Deliveroo should have broad access to investors and supporters.
“Amazon believes that this investment funding will lead to more pro-consumer innovation by helping Deliveroo continue to build its world-class service and remain competitive in the restaurant food delivery space by creating more highly-skilled jobs, innovating in the restaurant food delivery sector, and developing new products for customers.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
