Everything Amazon does has an impact and by leading a $575m funding round for the British food delivery company Deliveroo, it hurt shares in the latter’s rivals. The deal gives Amazon a stake in both delivery and preparation through “dark kitchens” in which some Deliveroo meals are made.
It is an arresting move — who knew that a company that started by selling books online would end up as the part owner of kitchens? — but it is characteristic of Amazon’s roaming instinct. It has moved from online retailing to running warehouses, publishing books, and making films and television shows for its Prime streaming service.
More surprising is the degree to which other technology groups are following Amazon in becoming vertically integrated. Instead of sticking to the business of running platforms, they are creating their own content and buying assets to bolster themselves.