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Uber to Buy Majority Stake in LatAm Food-Delivery Company Cornershop

The Street logo The Street 10/11/2019 Cherella Cox Owoyelu
a view of a car window: Uber to Buy Majority Stake in LatAm Food-Delivery Company Cornershop© TheStreet Uber to Buy Majority Stake in LatAm Food-Delivery Company Cornershop

Uber Technologies shares were gaining Friday after the ride-hailing company said it planned to further diversify, striking a deal to buy a majority stake in Latin American grocery-deliverer Cornershop.

Terms, including the specific size of the majority stake, weren't disclosed. If the deal is cleared by regulators, it should close in early 2020.

The San Francisco company's shares were trading up 4.2% at $30.10.

Uber's Latin America revenue has slipped relative to its result in other territories. This move should help boost sales on the continent and beyond, as Cornershop is a leading online grocery provider in Chile, Mexico, Peru and Toronto.

Headquartered in Santiago, Chile, Cornershop was started in 2015 by three friends, Oskar Hjertonsson, Daniel Undurraga and Juan Pablo Cuevas.

"Uber is the perfect partner as we embark on our quest to bring our unique flavor of on-demand groceries from incredible retail partners to many more countries around the world," Hjertonsson, who is the CEO, said in a statement.

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

Excited to announce our planned majority investment in Cornershop and to bring grocery delivery to the Uber platform! https://t.co/Km38LyGHMrpic.twitter.com/30qldUBzkz

— dara khosrowshahi (@dkhos) October 11, 2019
This article was originally published by TheStreet.

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