Amazon in talks to invest £450m in Deliveroo

Amazon is in talks to invest hundreds of millions of pounds in Deliveroo giving the food delivery app a boost as it takes on takeaway rival Uber Eats.

The internet retailer will announce a deal to back Deliveroo as part of a $575m (£450m) funding round which is expected to be revealed in the coming days, Sky News reported.

Read more: Shortsellers increase bets against food delivery giant Just Eat

Amazon is expected to contribute a large proportion of the funds being raised by the London-based tech start-up if the deal goes ahead.

It was previously reported that Amazon had made two offers to buy Deliveroo outright and Uber, which launched a disappointing initial public offering in New York last week, was reported to have held talks about an acquisition.

Amazon cancelled its own London takeaway delivery service Amazon Restaurants UK in December after two years amid fierce competition from Uber Eats, Deliveroo and Just Eat.

The funding round will take the total amount of capital invested in Deliveroo, which was founded in London in 2013, to more than $1.5bn.

Read more: Deliveroo to double business teams globally in corporate push

Last November it was reported that Deliveroo’s valuation was being pitched at between $3bn and $4bn.

City PM has contacted Amazon and Deliveroo for comment.