Published: Sun, October 13, 2019
Markets | By Otis Pena

Uber acquires Cornershop to delivery grocery

Uber acquires Cornershop to delivery grocery

Now, Uber is seeking to carve out some territory for itself in the grocery delivery industry through its upcoming acquisition of Cornershop, a startup that delivers food, toiletries, and other household supplies to customers on-demand (for a fee, of course). Uber introduced on Friday that it expects its acquisition of a majority possession stake in Cornershop in early 2020, as soon as it receives all the mandatory regulatory sign-offs. Cornershop-which now operates in South America, Mexico and Toronto, Canada-will help contribute yet another service to Uber's platform, which now offers rideshare and takeout via Uber Eats.

Uber CEO Dara Khosrowshahi said he plans to bring the grocery delivery service within their own platform, sharing a GIF on Twitter about how to find and use Cornershop on the Uber app. In case you missed it, it isn't the first time the online grocery store provider has made such attempts.

Reportedly able to deliver groceries in under an hour, Cornershop works with retailers such as Costco, Cedraui, as well as Walmart.

Initially, Cornershop was supposed to be acquired by Walmart for Dollars 225 Million back in September, however, the deal fell through after Mexican antitrust regulators blocked the deal.

As it stands now, Uber Eats offers restaurants an instant mobile presence and efficient delivery capability of which the company says "generates incremental demand and improves margins for restaurants by enabling them to serve more consumers without increasing their existing front-of-house expenses" according to securities filings.

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Sherman said Uber should fix its core business - ridesharing - before expanding.

Uber continues to expand despite struggling to make a profit. Cornershop will continue to operate with its current leaders, but will report to Uber's board as it will become part of the public company.

The move, which is subject to regulatory approval, could end uncertainty for the Santiago, Chile-based start-up backed by Accel and other venture investors.

Santiago-based Cornershop operates in Mexico, Chile, Canada and Peru, but chief executive Oskar Hjertonsson said the deal would allow it to deliver groceries 'in many more countries around the world'.

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