Connect with us

Plato Vertical Search

Startups

Uber to become the sole owner of grocery delivery startup Cornershop

Uber to become the sole owner of grocery delivery startup Cornershop

Uber has reached a deal to become the sole owner of Latin American delivery startup Cornershop, just one year after acquiring a majority stake in the company. The ride-hailing giant said in a regulatory filing Monday that it will purchase the remaining 47% interest in Cornershop in exchange for 29 million shares. The transaction is expected to close in July.

Uber announced in 2019 plans to take a majority ownership in Cornershop. That transaction wasn’t completed until the third quarter of 2020 other than in Mexico, which closed in January 2021. This latest agreement, which was reached June 18 and reported Monday, will make Cornershop a wholly owned subsidiary of Uber. The deal is a logical next-step in the Uber-Cornershop relationship, a source familiar with the matter told TechCrunch.

The deal suggests Uber’s bullishness in delivery hasn’t waned. With Cornershop as wholly owned subsidiary, Uber can beef up its grocery delivery options, a service made popular during the pandemic. The company started offering grocery delivery in select cities across Latin America, Canada and the U.S. last summer after it acquired Postmates in a deal valued at $2.65 billion. Uber CEO Dara Khosrowshahi said in a statement that the company’s grocery and new verticals business has exceeded a $3 billion annual bookings run rate for this year.

“That’s why we’re excited to deepen our commitment to the team at Cornershop and to support their vision as they scale globally,” he added. “Together, we will double down on the strategy of bringing same-day grocery delivery to the Uber platform worldwide.”

Cornershop, which is headquartered in Chile, was founded in 2015 by Oskar Hjertonsson, Daniel Undurraga and Juan Pablo Cuevas. The company expanded its operations to eight countries up and down the Americas, including Chile, Mexico, Brazil, Colombia, Costa Rica, Peru, the U.S. and Canada. The company raised $31.7 million over four rounds of funding from investors that include Accel and Jackson Square Ventures.

Uber wasn’t the only grocery service with its eyes on Cornershop; the startup was supposed to be acquired by Walmart in a $225 million deal, but it ultimately fell through after Mexican antitrust regulators blocked the deal from moving forward. It is unclear whether this deal will be subject to the same risks.

Uber faces stiff competition from grocery retailers themselves, many of whom offer delivery through partnering with startups like DoorDash or Favor Fleet.

TechCrunch has reached out to Cornershop for comment. We will update the story if they respond.

The story has been updated to include Uber’s comments.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/06/21/uber-to-become-the-sole-owner-of-grocery-delivery-startup-cornershop/

Advertisement. Scroll to continue reading.
Uber to become the sole owner of grocery delivery startup Cornershop
Advertisement Buy Bitcoin at coinsmart.com
Advertisement
Advertisement

Related Streams

Blockchain

Crypto.com, a leading cryptocurrency exchange, experienced an incident on January 17 when some of its users reported strange activity in their accounts. The exchange...

Gaming

It will happen in March. The post Assassin’s Creed coming to Free Fire as part of new collaboration appeared first on Dot Esports.

Gaming

Or we could see the multiverse and Fallers play a more pivotal role in the story. The post Gameplay leaks point to Pokémon Legends:...

Blockchain

The NFT trend is through the roof these days. There may be a difference of opinion on whether NFTs are just a fad or...