Amazon (AMZN) is leading a $575M funding round for Deliveroo, taking the total the food delivery app has raised to date up to $1.53B. Deliveroo, a British online food company, competes against Uber's (UBER) Uber Eats division, as well as smaller companies like Just Eat, Delivery Hero and Takeaway.com.

AMAZON INVESTMENT: Amazon is leading a $575M funding round for Deliveroo, bringing the total the food delivery app has raised to date up to $1.53B, Deliveroo confirmed on Friday. Deliveroo is a British company that allows users to order food deliveries from nearby restaurants using an app. Its rivals in the U.K. include Uber Eats and Just Eat, and it operates across 14 markets including Australia, Germany, Hong Kong and the UAE. Others taking part in the funding round include existing investors T. Rowe Price (TROW), Fidelity Management, and Greenoaks. With its investment, Amazon is set to be the largest investor in the Series G funding round, Deliveroo said.

Deliveroo said in a statement that it will use the funding to grow its engineering team in its London headquarters and expand its delivery reach to offer its service to new customers. Will Shu, the founder and chief executive officer of Deliveroo, said in the statement that the new investment will offer restaurants new opportunities to grow and expand their businesses. Shu added, "Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organization. This is great news for the tech and restaurant sectors, and it will help to create jobs in all of the countries in which we operate."

Meanwhile, Doug Gurr, Amazon's U.K. Country manager, said "We're impressed with Deliveroo's approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options."

WHAT'S NOTABLE: The Daily Telegraph reported late last year that Deliveroo is eyeing an initial public offering for 2020, curbing rumors that a takeover deal from Uber was in the works. According to a report from The Financial Times last year, Uber was interested in buying Deliveroo outright, but talks stalled after the two companies failed to agree on a valuation.

Sky News reported on Thursday that Amazon's investment in Deliveroo follows two unsuccessful approaches to buy Deliveroo outright.In February, The Financial Times said Uber was lowering fees for food delivery in Britain and Ireland and planned to let restaurants use its app but carry out their own deliveries amid mounting competition with Deliveroo and Just Eat.

Late last year, Amazon shuttered its food delivery service in the U.K., Amazon Restaurants, just over two years after launching in the country. The service, which competed with Deliveroo and Uber Eats, "needed to be more than a logistics company trying to be a food company," an an industry observer told The Evening Standard newspaper.

PRICE ACTION: In morning trading, shares of Uber are down 1.4% to $42.15. Amazon is lower by nearly 1% to $1,890.55.