Uber to begin grocery deliveries following Cornershop acquisition

14 Oct 2019

Image: PA Media

In yet another development in Uber’s business diversification, the ride-sharing company is set to start delivering groceries.

Uber has announced plans to start delivering groceries after buying a majority stake in an online grocery provider. The US-based ride-sharing app has acquired the majority ownership of Cornershop, a South America-based grocery delivery start-up currently operating in Chile, Mexico, Peru and Canada, for an undisclosed sum.

The company’s chief executive Dara Khosrowshahi said the move would help Uber become the “operating system” for people living in cities. As well as its car-hailing services, it already operates its Uber Eats takeaway food delivery platform.

“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,” Khosrowshahi said.

“We’re excited to partner with the team at Cornershop to scale their vision, and look forward to working with them to bring grocery delivery to millions of consumers on the Uber platform.”

On-demand groceries

Cornershop was founded in 2015 and is based in Santiago, Chile. Its smartphone app enables users to find connected supermarkets close to them and order their groceries through the app and have them delivered.

Cornershop founder Oskar Hjertonsson said: “In 2015, we started Cornershop with primarily the Latin American market in mind and we couldn’t be more excited to work with Uber to help us take that mission much further.

“Uber is the perfect partner as we embark on our quest to bring our unique flavour of on-demand groceries from incredible retail partners to many more countries around the world.”

The firm has not yet confirmed any plans to expand the regions in which Cornershop operates.

In its most recent earnings disclosure in August 2019 – the second report since it went public – Uber reported that it lost $5.2bn in the quarter. It also recently announced plans to lay off one-third of its 1,200-strong marketing department, and more than 400 people from its engineering and product teams.

– PA Media, with additional reporting by Eva Short.