Ride-hailing service giant Uber has arrived at a deal that’ll crown the company as the sole owner of delivery startup Cornershop. This development comes about one year after the ride-hailing giant acquired a majority stake in the Latin American delivery startup. In a regulatory filing made on Monday by Uber, the company stated that it will acquire the remaining 47 percent interest in Cornershop for 29 million shares. The transaction is expected to be concluded by July of this year.
Ride-hailing service Uber first revealed its plans to acquire majority ownership in Cornershop in 2019. The transaction was completed in the third quarter of 2020. The latest development of Uber wanting to become the sole owner of Cornershop was reached on the 18th of this month and announced on Monday, the 21st of June. When completed, the deal will crown Uber with the title of sole ownership; Cornershop would become a wholly-owned subsidiary of Uber.
Cornershop was founded in 2015 by Oscar Hjertonsson, Juan Pablo and Daniel Undurraga. It has its headquarters in Chile is operational in almost ten countries including Brazil, Columbia, Costa Rica, Mexico, Peru, Chile, Canada and the U.S. The startup has raised over $3o million across for different funding rounds from investors such as Jackson Square Ventures and Accel.
Apart from ride-hailing services, Uber provides other services among which food delivery is a part. Uber started providing grocery delivery services in some selected cities across the United States, Canada, and Latin America after it acquired Postmates in a deal valued at $2.65 billion. According to Uber’s CEO – Dara Khosrowshahi, Uber’s grocery and new verticals business have surpassed a $3 billion yearly bookings rate for this year alone.
“That’s why we’re excited to deepen our commitment to the team at CornerShop and to support their vision as they scale globally. Together, we will double down on the strategy of bringing same-day grocery delivery to the Uber platform worldwide”, Uber’s CEO said.
Uber becoming the sole owner of Cornershop promises to be a great deal that’ll put both Uber and Cornershop way ahead of their competitors.