Uber Will Acquire Cornershop To Expand Its Food Delivery Programs

Uber to acquire grocery delivery startup Cornershop

Uber to acquire grocery delivery startup Cornershop

Dara Khosrowshahi, CEO of Uber, stated that by working together, they could deliver groceries to millions of Uber consumers.

Cornershop is a startup based on online grocery deliveries.

Cornershop CEO and originator Oskar Hjertonsson emphasized the partnership will help in their objective of bringing "unique flavor of on-demand groceries from incredible retail partners to many more countries around the world".

The corporate simply acquired a majority stake in Cornershop, a Santiago, Chile-based grocery supply startup, in line with Bloomberg. Walmart just yesterday announced a new deal for grocery delivery in Canada with Cornershop, using the Cornershop app. Neither Uber nor Cornerstone have disclosed the details or financial information about the deal so far, but the company is confident that it will finalize the deal in early 2020.

An Uber spokesman said the company expected regulatory checks in both Mexico and Chile.

Nathan Lustig, a managing partner of Magma Partners, a seed stage venture capital fund for tech firms in Latin America, said Uber seemed to be gearing toward "super-app" status similar to Tencent Holdings' WeChat and Rappi, backed by Softbank.

Uber has never been content with being a mere ride-hailing service - that's why the company upgraded its app into an "OS for everyday life" last month, while also running several other services that are well outside the scope of traditional ride-sharing platforms.

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

Within the company's Securities and Exchange Commission filings, Uber Eats was listed as one of their key growth strategies of which they meant to continually invest in and expand beyond its current offerings.

Once Uber acquires Cornershop, the grocery service will maintain its leadership and report to a board with majority Uber representation. With that said, we don't know when the company will begin taking advantage of Cornershop's grocery delivery infrastructure - however, Uber will probably want to earn a return on their investment sooner rather than later.

Shares in Uber rose more than 4% to $30.03 in midday trading, but have lost about a third of their value since going public in May at $45 per share. The deal, of which the terms remain undisclosed, continues Uber's drive to diversify its business beyond ride-hailing.

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