Uber buys Chilean delivery startup Cornershop
- Oct 15, 2019
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Uber has announced that it has acquired a majority stake in Chilean startup Cornershop, which was founded in 2015, bridging the gap between deliverers and people who want to order grocery items and don't mind paying an extra fee to receive the product at home.
The purchase, which had no disclosed value, has yet to be approved by regulators. But Uber expects the investment to close in early 2020. Walmart tried to buy Cornershop later this year, but the deal was blocked by local agencies.
The startup is headquartered in Santiago and already operates in Mexico, Peru and Canada. If the acquisition with Uber is approved, the company's business could be moved to other markets where hide-railing has a strong stake, such as the United States and even Brazil, which is Uber's second largest market in the world.
"We couldn't be more excited to work with Uber to take our mission further," said Oskar Hjertonsson, founder of Chilean startup Cornershop, in a statement in the announcement of the purchase. "Uber is the ideal company, together with our business partners to take our way of buying and delivering at home to more countries around the world, "he said.
The startup purchase proves beneficial to Uber for two reasons. The first is to establish a presence within Chile, a country that is still quite resistant with the company's entry. The country's government is in the process of passing a general racing app law that would prevent it, for example, from offering Uber Pool, a shared racing service.
Another advantage is to strengthen yourself in another business area. Although the courier industry has other strong competitors, the size and resources that Uber has, in line with a good strategy, can actually make it well positioned.
The company recently announced the integration between its racing app and Uber Eats, which delivers prepared meals in restaurants. In a recent interview with The Verge, CEO Dara Khosrowshahi explained that the company's goal is to be present in as many spheres as possible: "You should think of Uber as a marketplace."