Yahoo Finance Uber To Completely Acquire Grocery Delivery Start-Up Cornershop
American tech company Uber Technologies has announced that it would be purchasing the remaining 47% interest in grocery delivery start-up Cornershop. The acquisition would make Uber the sole owner of the delivery company.
Uber To Acquire Cornershop
Uber announced earlier today that it would be purchasing the remaining 47% interest in grocery delivery start-up Cornershop. The acquisition is a further indication that Uber is expanding its business beyond its traditional ride-hailing venture.
This latest development comes roughly two years after Uber acquired a majority stake in Cornershop for an undisclosed fee. Oskar Hjertonsson, founder and CEO of Cornershop, revealed that Uber already controls more than 50% of Cornershop, and the two companies have been working together to deliver excellent results.
The grocery delivery company already operates in the U.S., Peru, Brazil, Colombia and Canada. According to Hjertonsson, Uber completely owning Cornershop would make it easier to truly unlock the full potential of the company. The acquisition deal is expected to be completed by next month.
Uber Expands Its Eats Segment
The tech company has focused most of its attention on the Uber Eats segment in recent months. The Coronavirus pandemic saw Uber Eats perform excellently as people ordered foods and groceries while at home.
Uber went on to acquire Postmates in July last year after failing to purchase food delivery service GrubHub. The expansion continued with the acquisition of alcohol-delivery service Drizly earlier this year.
The company’s ride-hailing business hasn’t been profitable since it was established. This led Uber to part ways with some of its electric bike and scooter business, Jump. The company also sold its self-driving segment, Advanced Technologies Group, to its start-up competitor Aurora Innovation. Furthermore, Uber also offloaded its flying taxi business, Uber Elevate.
Despite the acquisition of Cornershop, Uber’s stock price is down by 2.6% so far today. The stock price could perform excellently in the coming hours as the US market just opened not long ago.
This article was originally posted on FX Empire
