Uber has announced that it will be acquiring a grocery delivery startup, Cornershop. The company made it known that it is expecting its acquisition of a majority ownership stake in Cornershop in early 2020, once it receives all the necessary regulatory sign-offs.
According to Uber, the company will continue to operate under its current leadership but will report to a board that has Uber leadership in majority.
Cornershop was previously supposed to be acquired by Walmart in a deal which was disclosed in September, valued at $225 million. However, thedeal fell apart due to some Mexican anti-trust regulators that blocked it from happening.
This hasn’t stopped the Walmart/Cornershop relationship as they continue to work together as Cornershop expands its services to Toronto.
Prior to this development, Uber has experimented with grocery delivery, including partnership with Walmart. The company’s Chief Executive Officer, Dara Khosrowshahi was quoted to have said that grocery delivery is a natural place for the company to expand its business, given the success of Uber Eats, (Uber’s food ordering and delivery platform).