Uber Technologies Inc stated that it would acquire a majority stake in Cornershop, an online grocery provider based in Chile, founded by the Swede Oskar Hjertonsson. The ride-hailing company is in plans to buy stakes in this company as it seeks to expand its fast-growing food delivery app and includes groceries and other goods.
Founded in 2015 by Daniel Undurraga, Juan Pablo Cuevas, and Oskar Hjertonsson, Cornershop is an on-demand grocery delivery service for the Latin American market. While its headquarters is located in Santiago, Chile, Cornershop backed by Accel, ALLVP, Creandum, and JSV also operates in Mexico, Peru, and Canada, and aims to expand into many more countries around the world. As of now, the sum of the deal is undisclosed.
Why Cornershop?
Cornershop now operates in Chile, Mexico, Peru, and Canada, and aims to expand into many more countries around the world. Cornershop has gained rapid popularity in local markets, including Chile. In this region, its uniformed staff is seen commonly in the aisles of grocery stores looking for orders for customers and delivering them in recyclable and branded bags.
This app provides grocery deliveries to customers’ doorstep in just one hour from retailers such as Walmart, Chedraui, and Costco Wholesale Corp. “Whether it’s getting a ride, ordering food from your favourite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life”, said Uber CEO Dara Khosrowshahi.
Rebranded app coming soon
As a result of acquiring a stake in Cornershop, Uber will launch a rebranded app with its existing format. This app will have all services including groceries, bicycles, taxis, and restaurant deliveries. It is said that Uber expects to close this purchase of the online grocery delivery service in early 2020 depending on regulatory approval.
And, post the acquisition by Uber, Cornershop will continue operating under the same leadership. The team will be reporting to a board with a majority of Uber representatives.
Uber’s second attempt at grocery delivery
Softbank-backed Uber wants to expand in new areas even if the business fails to turn fruitful. By buying stakes in Cornershop, Uber is taking the second attempt to tap into the grocery delivery business. For the uninitiated, back in 2014, Uber Rush was launched and it had to shut down in 2018.
Main image picture credits: Cornershop
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