Uber expands delivery footprint in Latin America

After acquiring a majority stake in the company last year, Uber has now announced it has become the sole owner of Latin American delivery startup Cornershop. 

In a regulatory filing on Monday, Uber said it is to buy the remaining 47% of Cornershop in return for 29 million shares. The deal is set to close in July.

Uber announced plans to take a majority stake in Cornershop in 2019 but this wasn’t completed until the third quarter of 2020. This will make the Chile based delivery company a wholly owned subsidiary of Uber.

The deal signals Uber’s continued enthusiasm for delivery as well as ride hailing, with delivery booming during the pandemic even as ride hailing all but collapsed. It started offering grocery delivery in select cities across the Americas in 2020 after it had acquired Postmates for $2.65 billion. According to Uber, the grocery delivery business has exceeded a $3bn annual bookings run rate for this year.

“That’s why we’re excited to deepen our commitment to the team at Cornershop and to support their vision as they scale globally,” Uber CEO Dara Khosrowshahi said. “Together, we will double down on the strategy of bringing same-day grocery delivery to the Uber platform worldwide.”

Cornershop is based in Chile and since founding in 2015 has expanded operations into eight countries across the Americas including the US, Canada, Brazil and Mexico. It has raised $31.7 million in four rounds of investment funding in this time.

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