In a regulatory filing on June 22, 2021, Uber announced that it would be purchasing Cornershop, a Latin American delivery startup. Cornershop, which is headquartered in Chile, was founded in 2015. Oskar Hjertonsson, Daniel Undurraga, and Juan Pablo Cuevas expanded the company to eight countries, including Chile, Mexico, Brazil, Colombia, Costa Rica, Peru, and the United States and Canada.
In terms of the financial agreement, Uber is purchasing the remaining 47% interest in Cornershop in exchange for 29 million shares. The deal is expected to close sometime in July.
Uber originally announced its plans to take majority ownership in Cornershop back in 2019. Most of the transaction was completed in the third quarter of 2020, except in Mexico, which closed in January 2021.
The latest agreement, which was reached on June 18, 2021, will make Cornershop a wholly-owned subsidiary of Uber. According to TechCrunch, the deal is a logical next step in the Uber-Cornershop relationship. With this deal, Uber will be able to beef up its grocery delivery options – a service that was made popular during the pandemic.
This is not the first grocery delivery deal Uber has made. In summer 2020, Uber acquired Postmates for $2.65 billion and started offering grocery delivery in select cities across the United States, Canada, and Latin America.
According to Uber’s CEO, Dara Khosrowshahi, the company’s grocery business exceeded a $3 billion annual bookings run rate: “That’s why we’re excited to deepen our commitment to the team at Cornershop and to support their vision as they scale globally. Together, we will double down on the strategy of bringing same-day grocery delivery to the Uber platform worldwide.”
Uber was not the only company with its sights set on Cornershop. The startup was originally supposed to be acquired by Walmart in a $225 million deal. However, the deal ultimately fell through after Mexican antitrust regulators blocked the deal from moving forward.
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