Amazon’s hefty investment in the online food courier Deliveroo raises serious competition concerns that may need an in-depth investigation , a watchdog has warned.
Andrea Gomes da Silva, head of the Competition and Markets Authority, said: “Millions of people in the UK use online food platforms for takeaways, and more than ever are making use of similar services for the same-day delivery of groceries.
“There are relatively few players in these markets, so we’re concerned that Amazon having this kind of influence over Deliveroo could dampen the emerging competition between the two businesses.
“If the deal were to proceed in its current form, there’s a real risk that it could leave customers, restaurants and grocers facing higher prices and lower quality services as these markets develop.
“This is because the significant competition which could otherwise exist between Amazon and Deliveroo would be reduced.”
A Deliveroo spokesman said: “Deliveroo has been working closely with the CMA and will continue to do so.
“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.
“Deliveroo is a British company operating right across the country and this investment will be particularly beneficial to the UK economy.”