Uber continues to expand beyond its core ride-hailing business.
Uber Technologies announced an agreement to acquire majority ownership of Cornershop, an online grocery delivery start-up primarily serving Latin America. The deal is expected to close in early 2020, pending regulatory approval.
Founded in 2015 and based in Santiago, Chile, Cornershop mainly serves Chile, Mexico and Peru. It recently expanded into North American, entering the Toronto market via a pilot with Walmart’s Canadian business unit.
Uber is not the first company to try and acquire Cornershop. In September 2018, Walmart announced it has entered into an agreement to acquire the start-up for $225 million. But in June, Mexico’s Federal Economic Competition Commission (COFECE) rejected the acquisition, citing competitive concerns.
“Whether it’s getting a ride, ordering food from your favorite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life,” said Dara Khosrowshahi, CEO, Uber. “We’re excited to partner with the team at Cornershop to scale their vision, and look forward to working with them to bring grocery delivery to millions of consumers on the Uber platform.”
Uber said that once the transaction in completed, Cornershop will continue to operate under its current leadership, reporting to a board with majority Uber representation.
“In 2015 we started Cornershop with primarily the Latin American market in mind and we couldn't be more excited to work with Uber to help us take that mission much further,” said Oskar Hjertonsson, founder and CEO, Cornershop. “Uber is the perfect partner as we embark on our quest to bring our unique flavor of on-demand groceries from incredible retail partners to many more countries around the world."
Cornershop was founded by friends Oskar Hjertonsson, Daniel Undurraga and Juan Pablo Cuevas in 2015. Headquartered in Santiago, Chile, Cornershop is backed by Accel, ALLVP, Creandum, and JSV.