Deliveroo raises $385 million for expansion

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Europe

British takeaway food delivery firm Deliveroo has raised 385 million US dollars in new funding, the firm said in a statement on Sunday which set out that the money would help establish operations in new areas of the country and overseas.

The firm said the funding round brought its total valuation to more than 2 billion US dollars and would allow it to expand into new “towns, cities and countries,” enlarge its technology team, and work with restaurants to develop delivery-only kitchens.

Deliveroo operates in over 150 cities across 12 countries.

The funding is led by funds and accounts advised by T. Rowe Price Associates, Inc. and Fidelity Management & Research Company, the company said.

“We are excited to see this capital put to use to build out their Editions concept and expand their geographic footprint,” said Henry Ellenbogen, portfolio manager at T. Rowe Price New Horizons Fund.

Like taxi app Uber, which was stripped of its London operating license on Friday, Deliveroo has been criticized by unions who say it is exploiting its staff by not offering basic protections and some riders are pursuing legal action to push for workers’ rights.

Deliveroo has previously said it would give its self-employed riders insurance and sick pay if the government changed the law so it could offer some, rather than all, the entitlements enjoyed by workers.

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Source(s): AFP ,Reuters