Uber to Acquire Majority Stake in Grocery-Delivery Service Cornershop
October 11 2019 - 9:44AM
Dow Jones News
By Kimberly Chin
Uber Technologies Inc. has reached a deal to buy a majority
stake in grocery-delivery company Cornershop, as the company
continues to expand its reach beyond the core ride-hailing
business.
Uber didn't disclose how much it would pay for the stake.
The San Francisco company has said in securities filings that it
wanted Uber Eats to do more than deliver food from restaurants.
With Cornershop, Uber said it plans to bring grocery delivery to
its millions of consumers around the world. Cornershop already
provides on-demand delivery for supermarkets, pharmacies and food
retailers in Chile, Mexico, Peru and Toronto, Canada's largest
city.
Beyond ride-hailing and food delivery services, Uber last week
launched the Uber Works app, aiming to pair businesses with
temporary workers, and it already offers services such as freight
brokerage and it recently launched a helicopter service in New York
to take travelers from Manhattan to John F. Kennedy International
Airport.
"We want Uber to be the operating system for your everyday
life," Uber Chief Executive Dara Khosrowshahi said.
Last year, Walmart Inc. had also set its eyes on Cornershop,
which is based in Santiago, Chile. The retail juggernaut agreed to
buy the company for roughly $225 million, but those plans fell
through after Mexican antitrust officials blocked the deal in June.
The regulator said the acquisition could allow Cornershop to refuse
service to Walmart competitors or that Walmart could refuse to sell
its products on platforms operated by Cornershop's competitors.
Cornershop, which is backed by Accel, ALLVP, Creandum, and
Jackson Square Ventures, was founded in 2015 by Oskar Hjertonsson,
Daniel Undurraga and Juan Pablo Cuevas.
After the deal closes, Cornershop will remain under its current
leadership and will report to a board that has majority Uber
representation, Uber said.
The transaction is expected to close in early 2020.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
October 11, 2019 09:29 ET (13:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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