According to a report by Reuters, Amazon.com, Inc. [NASDAQ: AMZN] is currently in negotiations that will see it sink hundreds of millions of pounds in a United Kingdom-based delivery app referred to as Deliveroo. The stake in the app is part of the $575 million fundraising. The same report was also featured on Sky News on May 16.
The report indicates that Deliveroo is expected to make an announcement on the same in the coming days. The announcement cited the sources of the story, however, they were in graphics. The confirmation of the deal will see Amazon use a great deal of the funds raised by Deliveroo in the gig economy.
In another report, published in September 2018, a newspaper The Telegraph said that the online shopping guru had already come up with a couple of exploratory approaches for the app in question.
Deliveroo is a food delivery application that was founded by its CEO Will Shu and opened offices in London in 2013. The founder found out that there are many restaurants in the great city, however, only a few of them delivered food to their customers. The company currently provides customers with reliable delivery services. Moreover, the app allows the customers to view the progress of the orders and track the delivery via their phones. The company has grown substantially to record more than 650% year-over-year growth.
Deliveroo has expanded its business to more than 100 towns and cities in the United Kingdom and is currently partnering with more than 8,000 restaurants. The app uses a unique algorithm that executes on a “powerful predictive technology” to arrive at “the most efficient way of distributing orders based on the location of restaurants, riders and clients.”
The company also allows restaurant to have access to data that can help them expand to more markets. Restaurants are able to find out the cuisines people want in certain areas but are not available using the Editions platform.
Amazon, Inc. (NASDAQ:AMZN) Fundamental and Technical Picture
Amazon has been bullish in most of the trading sessions this week. The stock has remained in the green and is likely to close the trading for the week in the green. Amazon stock closed the trading on Thursday, May 16 at $1907.57 following a +36.42 relative change in addition to a 1.95% rise in its value. With an NLS volume of 1,703,736, AMZN zoomed to high of $1,917.50 considering that it brushed shoulders with lows of $1,876. The stock’s 52-week high is $2,050.50 while the low in the same range is $1,307. Amazon has a 50-day average daily share volume of 4,446,065 and a share volume of 4,707,752 alongside a market cap of $939 billion.
The 4-hour chart shows that AMZN is currently in a bullish mode following the recovery from the lows in December 2018 at $1,310.44. The stock has over the last several months in 2019 corrected above the 200 Simple Moving Average (SMA) while defending the trendline support. New 2019 highs recently formed at $1,967.88 before the pullback that affected most of the stocks in the first week of May. Amazon has since recovered and is sitting comfortably above $1,900 support.