Amazon is aiming to further tighten its grip on the online market by giving Prime subscribers a year’s free Deliveroo Plus membership, offering unlimited free deliveries from 50,000 restaurant and grocery partners.
The partnership comes over two years after Amazon led a $575m (£416m) funding round in Deliveroo, with the money used to expand its engineering team and delivery reach.
The UK’s Competition & Markets Authority (CMA) initially blocked the deal, but gave it the green light last year just as the pandemic struck.
The move, which will see the £3.49 delivery fee waived for Prime customers on orders over £25, is designed to increase retention and loyalty among Amazon Prime’s estimated 8 million customers. The offer will be the equivalent of a “silver tier” Deliveroo Plus membership.
It is also designed to appease jitters fears following Deliveroo’s difficult float in March, which saw 31% of the firm’s value wiped out on the first day, with market capitalisation declining nearly £2bn from its £7.6bn starting point. The latest share price values the company at £5.7bn.
In July, Deliveroo said it is creating more than 400 top tech jobs over the next 12 months, including roles for data scientists, software engineers and designers, as part of plans to usher in a raft of innovations to improve the experience of its three constituents of restaurants, riders and customers.
The new staff will play a key role in building “best-in-class technology”, the company said, including helping restaurants reach new customers, improving rider experience, and giving customers access to their favourite dishes.
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