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Deliveroo and Amazon have built their first customer-facing partnership since the US e-commerce group agreed to invest in a London-based food app two years ago, delivering free delivery to Prime customers on specific orders. Provided.
This move happens even though UK regulators are considering the risks of just such an alliance when considering whether to allow Amazon to invest. Deliveroo, Initially agreed in 2019.
Millions of Amazon Prime subscribers can get unlimited free delivery for one year on Deliveroo orders from grocery stores and restaurants, as long as they spend £ 25 or more per order. This offer is typically the £ 3.49 / month Deliveroo Plus “Silver” tier.
Lisa Leung, director of prime and marketing at Amazon UK, said the company “is constantly looking for ways to provide more value to prime members.” In addition to free shipping, discounts, and its video streaming services, Prime benefits beyond Amazon’s own product network previously included a one-year free Nintendo Switch Online membership and a discounted wireless contract. ..
During last year’s investigation, UK competition regulators expressed concern that using Amazon’s Prime network could give Deliveroo an unfair advantage over rivals such as Just EatTakeaway.com and UberEats. ..
However, the Competition and Markets Authority finally concluded that such cooperation does not present sufficient “substantial” risk to justify the intervention.
“CMA has discovered, based on a realistic outlook, that the parties have the ability to bundle Deliveroo Plus and Amazon Prime and can use this strategy to seize Deliveroo’s competitors,” the agency said. I am. I have written With the final decision to clear the transaction in August 2020.
“But the CMA also found that the incentives to engage in foreclosure strategies resulting from transactions were insufficient to provide a realistic outlook for SLC. [substantial lessening of competition].. “
Amazon terminated its own restaurant delivery service in the UK in late 2018, shortly before starting discussions to invest in Deliveroo. Amazon and Deliveroo are expanding their grocery delivery services separately. Amazon, which owns Whole Foods, has opened six physical Fresh grocery stores in London this year. These stores use “just out” technology to eliminate traditional checkouts.
Deliveroo plans to use a portion of its initial public offering revenue in March to expand its Plus subscription service, which is considered important for loyalty and customer retention in competitive markets. Stated.
Last month, Deliveroo’s share price temporarily returned to 390p, and the company set the price for an IPO, but then closed at 331p on Tuesday.
Amazon and Deliveroo offer free delivery to Prime subscribers Source link Amazon and Deliveroo offer free delivery to Prime subscribers