The Competition and Markets Authority (CMA) have approved a £400m Amazon and Deliveroo deal after the food delivery services said they will go bust without the money.
After the coronavirus lockdown was implemented by the government on 23 March, Deliveroo was heavily affected after major restaurant chains closed.
The CMA said on Friday the “imminent exit of Deliveroo would be worse for competition than allowing the Amazon investment to proceed.”
The CMA said, “The ongoing lockdown in the UK has resulted in the closure of a large number of the key restaurants available through Deliveroo, and a significant decline in revenues.
“While Deliveroo has sought to expand its supply of convenience groceries during the crisis, these sales are limited and have not made up for losses in its restaurants business.
“As a result, Deliveroo recently informed the CMA that the impact of the coronavirus pandemic on its business meant that it would fail financially and exit the market without the Amazon investment.”
A Deliveroo spokesman said, “We are delighted the CMA has found that Amazon can invest in Deliveroo.
“This investment is a key part of Deliveroo’s plan to provide an even better service to customers, riders and restaurants, and, as we’re a British company, this will be a boost to the UK economy.
“The unprecedented health crisis we all face has disrupted businesses across the country.”
The service was launched two weeks ago and is aimed at those who are self-isolating and cannot reach a store.
On Thursday Burger King reopened some branches and they are to provide 10,000 free meals a week to NHS staff.
Burger King marketing director Katie Evans said: “We are committed to providing 1,000 meals a week to NHS staff based in the vicinity of these restaurants as we want to demonstrate how appreciative everyone at Burger King UK is of their efforts in these unprecedented times.”
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