Deliveroo is present in several countries in Europe and Asia, including the United Kingdom, Germany, France and Italy
The main characteristic of this service is the home delivery of food with bicycles and scooters. It is feared that Amazon’s investment in the app will allow it to build its own empire of food shipments.
According to AP, the Authority of Markets and Competition (CMA) of the United Kingdom will be launched against Amazon. The institution wants to know if the investment of the Jeff Bezos company in Deliveroo, an app for delivery of food at home, goes against the competition rules. While the deal was not a merger, it did buy a significant stake in the company. And, in this context, regulators fear that there is no distinction between the two brands.
Both Deliveroo and Amazon reaffirmed that the investment will allow the startup to grow and improve its service. But experts interviewed by AP point out that the CMA fears the expansion efforts of Jeff Bezos. Especially that the brand acquires the ability to sell any product that customers want and deliver it by any channel they prefer. If suspicious activity is found, the Authority could reverse the operation.
Drastic measures against Amazon and company
More and more authorities fear technology and its potential to discourage competition. The same CMA began a few days ago an investigation against digital advertising platforms, such as Facebook and Google. Although Disney closed the acquisition of Fox in legal terms, it still generated widespread doubts. And two federal agencies of the United States, in early June, were launched against Amazon and three other giants of technology.
And the fears against these brands, especially Amazon, are well founded. In addition to its iconic ecommerce business, the Bezos brand has multiple business units. Among them, streaming video and audio, smart devices, advertising, traditional retail, smart homes and surveillance. It is true that his intention seems to be to become a universal store.
In this sense, it is crucial that Amazon to be careful with its business decisions. There is already animosity between the public and the regulators against the technological ones. Some rivals, such as Facebook, have even been threatened with a breach of the brand. Thus, Bezos company must ensure to maintain the autonomy between its main business and its investments. Otherwise, the authorities may begin to punish their operations.
Also published on Medium.