Amazon’s investment in Deliveroo, which was announced this morning, has already come under fire – with the company being accused of only wanting “Deliveroo’s tech and data”.
The eCommerce giant is leading a $575m round of funding into the UK-based food delivery business. However, the deputy leader of the Labour Party, Tom Watson, has announced that he will be calling on the UK’s Competition and Markets Authority (CMA) to launch an investigation into the investment, meaning the startup may never see Amazon’s cash due to what Watson has called “surveillance capitalism”.
In a series of tweets, the MP said: “Deliveroo's CEO Will Shu welcomes a land grab by Amazon because ‘it is such a customer-obsessed organisation’,” referring to comments made by Shu about the investment. “He's right, Amazon is obsessed. Obsessed with tracking tools, micro-targeted ads, extracting billions through monetising our personal data.
“They don't want to get their mighty claws on a food delivery system. They want Deliveroo's tech and data. They don't just want to know how you eat, what you eat, when you eat. They want to know how best to extract your cash throughout your waking and sleeping hours.”
Despite Watson’s tweets, it’s still unclear under what grounds he will demand a CMA investigation into the investment. But we can assume, based on his comments, that it will relate to a potential misuse of data.