Business

Uber will acquire the Chilean grocery delivery startup Cornershop

The acquisition process might be complete by early 2020

Uber will acquire the Chilean grocery delivery startup Cornershop
  • Uber is on the final stage to acquire the Chilean startup Cornershop. The company is expecting to have the majority ownership as early as in 2020;
  • Wallmart has also tried to acquire Cornershop, but the transaction didn’t move forward because of regulatory matters;
  • The acquisition is part of Uber’s plan to expand Uber Eats success.

A Latin American startup caught Uber‘s attention and now it will make part of the global group. Cornershop, the grocery delivery startup born in Chile, will be bought by Uber – which might have the majority ownership of the company as early as in 2020, according to TechCrunch

READ ALSO: For the CEO of Uber, Latin America is one of the best markets for the company

Wallmart was the first interested in buying the Chilean startup in a process announced in September – at that time, the whole deal was valued in $225 million, but the transaction was prohibited to move forward by Mexican anti-trust regulators. Although Wallmart still works with Cornershop in the strategy to expand the service beyond the Latin American market and reaching Toronto in Canada, Uber will be the one to get the ownership. 

According to TechCrunch, during four investment rounds, Cornershop raised $31.7 million by several funds such as Accel and Jackson Square Venture, for instance. The acquisition value wasn’t released, but Uber’s CEO Dara Khosrowshahi revealed that the process makes part of its business expansion plan, regarding Uber Eats success. 

The deal is now on the final stage and depends on regulatory approval to move forward but despite all the optimism around the transaction, it was exactly at this step that Wallmart’s acquisition felt apart, so the successful conclusion of this acquisition remains to be seen.