Uber will acquire Cornershop, a start-up of grocery delivery that began life serving the Latin American market and recently switched to service in Toronto, the first North American city. Uber announced on Friday that it expects the acquisition of a majority owner in Cornershop in early 2020, when it first received all necessary regulatory signatures.
Cornershop was founded in 2015 by Oskar Hjertonsson, Daniel Undurraga and Juan Pablo, and it is headquartered in Chile. The company will continue to operate under that management in its current form for now, Uber said, and will report to a board that counts Uber management in most of its overall composition.
During four rounds of funding, Cornershop raised $ 31
Meanwhile, Walmart has continued to work with Cornershop, and expanded its service offering in Toronto with its launch as of late. Uber has previously experimented with the delivery of groceries, including in collaboration with Walmart, and Uber CEO Dara Khosrowshahi has said that grocery delivery is a natural place for the company to expand its business given Uber Eats success. It will face competition from entrenched players, including Instacart and Postmates, but Uber Eats also faced competition from much more established players because of it.
The agreement is also still subject to government approval, as mentioned, and this is exactly where the planned Walmart acquisition stumbled before Cornershop, so it is worth following it closely. Still, Uber doesn't make any secret about its intentions with the grocery category, so it seems to be taking shape somehow.