Richard Curry, Partner in the Retail & Leisure team, speaks to Food Navigator about Amazon’s investment in Deliveroo. The online retail giant will lead a new $575m investment into the food delivery company alongside other investors. This investment will allow the food delivery service to improve the company’s tech team in the UK headquarters and expand further to reach new customers.
Is Amazon laying the foundations for a move into bricks and mortar?
Amazon’s move is evidence of it tapping into a growing trend for food delivery, in urban zones especially, and possibly setting the foundations for a move into bricks and mortar, believes Richard Curry, partner in the retail team at property and planning consultancy Rapleys.
If a consumer could receive Deliveroo delivery of Amazon’s range of goods, he told FoodNavigator, “that is tapping into a food market and competing with retailers.”
If Amazon were looking to set up in bricks and mortar space, he notes, then, “having all this infrastructure in place is going to be key, as most of the bigger organisations that are already established in bricks and mortar have antiquated distribution networks that are focussed on stores.”
It would also need to show a point of difference to stand out. ” Having this facility would give them that in my view.” He added that from Amazon’s perspective the investment was a ‘win-win’.
“It gives them another way of breaking into that [food goods delivery] market in its own right and at the same time if they did want to go nationwide into bricks and mortar they are setting up that to give themselves the opportunity to make that decision without it being expenditure on a gamble.
They know that the [Deliveroo] operation works and it doesn’t necessarily commit them to go into bricks and mortar but it would be required by them if they were to.”
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