Uber Buying Cornershop to Increase its Foothold in Grocery Delivery Market

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The deal is to expand the business globally

Uber, the ride-hailing behemoth on Friday announced it is going to buy a majority share in Cornershop, the online grocery supplier. This will enable the company to expand its business in rapidly growing grocery delivery market.

Cornershop based out of Santiago, do their business in Mexico, Chile, Canada, and Peru. As per the Chief Executive Oskar Hjertonsson the new predicament will help the company to carter the grocery delivery services in many different markets across the globe.

The app of the company helps to deliver the groceries on the doorsteps in just one hour but the company is facing stiff competition from Costco, Wal-Mart, and Mexico’s Chedraui. The company charges some amount for its services from customers and from retail chains.

The aim is to be the operating system of everyday life

Dara Khosrowshahi, CEO Uber said, “Whether it’s getting a ride, ordering food from your favorite restaurant, or soon, getting groceries delivered, we want Uber to be operating system for your everyday life.”

The exact value of the deal is not disclosed. Wal-Mart lost its bid to buy Cornershop earlier this year as it was not able to provide a guarantee of level playing field for the competitors. The Cornershop will keep working under the present authority but have to report to Uber board of control. Cornershop got popular among people in short period of time in the local market, which includes Chile also.

The company has expanded from delivering food to clothes, toys, home decor, books, electronic goods, and pharmaceutical items. The new deal is not a surprise as Uber is signing such deal all over the world. The aim of Uber is to move beyond its taxi services.



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