Uber is in talks to acquire Deliveroo

Uber is in early-stage talks to acquire the food-delivery app Deliveroo… in the latest sign of its ambition to ramp up investment in the sector this year. The talks… come amid intensifying competition in food delivery. Companies from Amazon and GrubHub to DoorDash and Just Eats are seeking to capture the loyalty of people who are more inclined to stay home than go out to a restaurant… Uber claims to have built the largest food delivery service outside China with Uber Eats, which it launched in 2014 and is on track to report annualised revenues of $6 billion this year. The business operates in more than 290 cities and has been pushing into new markets across Europe, the Middle East and Africa this year. UK-based Deliveroo is one of Europe’s best-funded start-ups, raising $385 million last year in a round that valued the company at $2 billion… Deliveroo made a loss of £129 million in 2016, the most recent year for which accounts are available… Flush with a $1.25 billion cash infusion from Japan’s SoftBank earlier this year, Uber has signalled it is willing to invest and strike deals to cement its market-leading positions in ride-hailing and food delivery ahead of a planned initial public offering next year.

 

Shannon Bond, James Fontanella-Khan and Aliya Ram

 

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