Uber to buy Chile’s Cornershop in bid to deliver your groceries
SANTIAGO (Reuters) – Uber (UBER.N) said on Friday it would buy a majority stake in online grocery provider Cornershop as the ride-hailing giant moves to expand its fast-growing delivery service into the grocery store market.
Santiago-based Cornershop operates in Mexico, Chile, Canada and Peru, but Chief Executive Oskar Hjertonsson said the deal would allow it to deliver groceries “in many more countries around the world.”
The app provides delivery of “groceries to your front door in one hour” from retailers including Costco Wholesale Corp (COST.O), Walmart Inc (WMT.N) and Mexico’s Chedraui (CHDRAUIB.MX). It charges retail chains and customers a commission for its services.
“Whether it’s getting a ride, ordering food from your favorite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life,” Uber CEO Dara Khosrowshahi said in a statement.
No valuation was disclosed for the deal.
Mexican antitrust officials earlier this year blocked a $225 million bid by Walmart (WMT.N) to buy Cornershop, citing concerns the retail giant could not guarantee a level playing field for rival retailers.
Cornershop would continue to operate under its current leadership but would report to a board with majority Uber representation, Uber said in a statement.
Cornershop has rapidly gained popularity in local markets, including Chile, where its shoppers are a common sight scrambling down the aisles of grocery stores as they hunt down orders for customers.
Reporting by Dave Sherwood