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Retail

Uber To Buy Chile's Cornershop In Bid To Deliver Groceries

Uber 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 , Walmart Inc and Mexico's Chedraui. It charges retail chains and customers a commission for its services.

"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," Uber CEO Dara Khosrowshahi said in a statement.

The Deal

No valuation was disclosed for the deal.

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.

Mexican antitrust officials earlier this year blocked a $225 million bid by Walmart to buy Cornershop, citing concerns the retail giant could not guarantee a level playing field for rival retailers.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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