Yesterday, Mexico’s Federal Economic Competition Commission (Cofece) gave Uber Technologies Inc. approval to acquire a majority stake in grocery delivery service Cornershop, according to Bloomberg.
In October 2018, Walmart signed a definitive agreement to buy Cornershop for $225 million, but Cofece prevented the negotiation from taking place, citing risks of displacement of Cornershop’s competitors, and of hindering the development of new platforms.
The regulator’s approval was the only piece missing for this new deal to be complete, Uber said in a statement. Currently, consumers in various cities in Latin America, Canada, and the US can find Cornershop grocery delivery through the Uber and Uber Eats apps.
“Our goal when we launched Cornershop five years ago was to create the best grocery and specialty stores delivery platform in Mexico, and this partnership with Uber in Mexico will help drive that vision,” said Oskar Hjertonsson, Cornershop founder and CEO.
Uber is looking at grocery delivery as a way to grow as more people stay home during the pandemic. For two straight quarters, Uber has made more money dropping off restaurant food than transporting people, so they’re looking to expand by handling groceries and pharmacy items, in addition to prepared meals.
“Uber and Cornershop are committed to promoting delivery services that support commerce and local communities, which is even more important during uncertain scenarios like the ones we face today,” said Eduardo Donnelly, CEO of Uber Eats for Latin America.
Cornershop México will continue to operate independently until the acquisition is completed, which is expected to happen in the next few days.
Cornershop will continue to operate under its current leadership, reporting to a board with majority representation of Uber.