After establishing itself as a reliable brand in the On-Demand Cab services market, Uber is now all set to venture into the grocery delivery domain in Latin America and Canada. This week, Uber announced that grocery delivery is the new service in its list of offerings to the customers.
To foster the same, Uber is likely buying a significant stake in Cornershop. The company is an online grocery delivery provider in South America. It also provides services in Toronto as per the reports.
Uber to Start Delivering Grocery as It Buys Cornershop
Uber is set to provide grocery delivery services in countries like Mexico, Peru, Chile, and Canada. With the procurement of Cornershop, Uber sealed the news that it is now adding another offering that caters to more extensive consumer needs.
Deal to Complete in 2020
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Ubers On-Demand Cab and Food Delivery are already widely used by customers across the globe. Uber has not disclosed the points and terms of the agreement yet, however, the deal will be finalized in early 2020.
Diversification from Core Ridesharing Business
Uber’s deal with Cornershop affirms the fact that the company is adapting diversification from its core ridesharing offerings. Lately, Uber has faced losses in Latin America despite growth in other geographical regions. The company saw a decline of 24 percent in its revenue in Latin America in the second and third quarter of 2019.
Uber Intends to become Consumer’s Daily Operating System
Dara Khosrowshahi, the CEO of Uber, announced that the services for grocery delivery would appear in the Uber platform. He also shared a Twitter post with a Giff that shows how users can access Cornershop within the Uber App.
Dara said that “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.
The plans for rolling out grocery delivery in the United States are not clear yet.
Wal-Mart also tried to buy Cornershop earlier this year; however, the issues between the US and Mexico governments led the antitrust officials from Mexico to block the deal.
As per the reports, after acquiring Cornershop, the grocery chain leadership will remain the same; however, it would report to the Uber majority board.