Amazon Gives U.K. Restaurant Delivery Service the Chop as Competition Heats Up
23 November 2018 - 3:53AM
Dow Jones News
By Adam Clark
Amazon.com Inc. (AMZN) said Thursday that it is shutting down
its restaurant delivery service in London as competition
intensifies in the U.K. takeaway food sector.
The U.S. technology giant appears to have given up in a fiercely
competitive market, where it faced local incumbents Just Eat PLC
(JE.LN) and private company Deliveroo, as well as Uber Eats.
"We are closing Amazon Restaurants UK. We would like to thank
all of our customers and merchants, and delivery partners for their
support," Amazon said.
Amazon Restaurants is a perk for members of the retailer's Prime
service. It launched in London in 2016 and listed more than 100
restaurants, but never expanded outside the capital in the U.K. In
the U.S. the service is available in more than 20 cities.
London offers the largest market in the U.K.'s takeaway delivery
sector, which is now worth 4.2 billion pounds ($5.37 billion)
according to figures from research company NPD Group. In September,
it was reported that Uber was in early negotiations to buy
London-based Deliveroo, which was said to be valued at around $2
billion.
The prospect of fiercer competition has led market leader Just
Eat to invest in its delivery services, having previously focused
on its technology platform.
Just Eat shares at 1621 GMT were up 4.2%, the best performer in
the FTSE 100, valuing the company at GBP4.08 billion.
Write to Adam Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
November 22, 2018 11:38 ET (16:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Just Eat (LSE:JE.)
Historical Stock Chart
From Apr 2024 to May 2024
Just Eat (LSE:JE.)
Historical Stock Chart
From May 2023 to May 2024
Real-Time news about Just Eat Plc (London Stock Exchange): 0 recent articles
More Just Eat News Articles