Uber to Acquire Cornershop: Complete Ownership of Grocery Delivery

Uber Acquires Full Ownership of Cornershop

Uber has finalized an agreement to become the exclusive owner of Cornershop, a Latin American delivery service. This development occurs just over a year following Uber’s initial acquisition of a majority stake in the company.

Details of the Acquisition

According to a recent regulatory filing, the ride-hailing company will obtain the remaining 47% of Cornershop through an exchange of 29 million shares. The completion of this transaction is anticipated in July.

Uber initially announced its intentions to secure a majority ownership position in Cornershop back in 2019. However, the formalization of this transaction was delayed until the third quarter of 2020, with the exception of Mexico, which concluded in January 2021.

Strategic Implications

This agreement, reached on June 18th, will establish Cornershop as a completely owned subsidiary of Uber. A source close to the matter indicated to TechCrunch that this move represents a natural progression in the ongoing Uber-Cornershop partnership.

The acquisition underscores Uber’s continued confidence in the delivery sector. Integrating Cornershop fully allows Uber to significantly enhance its grocery delivery capabilities, a service that experienced substantial growth during the pandemic.

Expansion of Grocery Delivery Services

Uber began offering grocery delivery in select locations across Latin America, Canada, and the United States last year, following its $2.65 billion acquisition of Postmates. Dara Khosrowshahi, Uber’s CEO, stated that the company’s grocery and emerging business sectors have now surpassed an annual booking rate of $3 billion.

“This is why we are pleased to strengthen our dedication to the Cornershop team and support their global expansion plans,” Khosrowshahi added. “We will collectively focus on expanding same-day grocery delivery to the Uber platform on a global scale.”

Cornershop’s Background and Growth

Founded in 2015 by Oskar Hjertonsson, Daniel Undurraga, and Juan Pablo Cuevas, Cornershop is headquartered in Chile. The company broadened its operations to encompass eight countries throughout the Americas, including Chile, Mexico, Brazil, Colombia, Costa Rica, Peru, the U.S., and Canada.

Over four funding rounds, Cornershop secured $31.7 million in investment from firms such as Accel and Jackson Square Ventures.

Previous Acquisition Attempt

Walmart had previously pursued the acquisition of Cornershop in a deal valued at $225 million, but the transaction was ultimately blocked by Mexican antitrust regulators. It remains uncertain whether the current deal will encounter similar regulatory hurdles.

Competitive Landscape

Uber faces considerable competition from grocery retailers themselves, many of whom are partnering with delivery services like DoorDash or Favor Fleet to offer delivery options.

TechCrunch has contacted Cornershop for a statement and will update this article upon receiving a response.

This report has been updated to include comments from Uber.