Uber announces Cornershop deal

Uber is sizing up to AmazonFresh and Instacart by buying a majority stake in South American grocery delivery venture Cornershop. Terms of the deal have not been disclosed.

The deal is expected to close in early 2020, subject to regulatory approval. “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,” says 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.”

“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,” comments Oskar Hjertonsson, Founder and CEO, Cornershop. “Uber is the perfect partner as we embark on our quest to bring our unique flavour of on-demand groceries from incredible retail partners to many more countries around the world."

The startup was set to be acquired by Walmart in a deal valued at $225 million, but that fell apart earlier this year when Mexican anti-trust regulators blocked it. Walmart has, however, continued to work with Cornershop, expanding its offering in Toronto.

Cornershop will continue to operate under its current leadership, reporting to a board with majority Uber representation.