Uber is spreading its wings, gets into a grocery delivery business

Uber is spreading its wings, gets into a grocery delivery business

Expanding to new delivery horizons, the online cab company Uber has announced on Friday that they will be acquiring a majority share of the grocery delivery business Cornershop. The deal is to be finalized early in 2020 awaiting its regulatory approval.

DaraKhosrowshahi, CEO of Uber states that the company desires to involve and be a part of everyone’s daily activities like booking a ride, place a food order from online restaurants an even to the extent of delivering groceries to every household.

The company come to origin in 2009 as an executive chauffeured car service and now has evolved into providing multiple services which include restaurant delivery app Uber Eats as well as renting out bicycles and scooters. Experimenting in the past with other forms of delivery options, Uber introduced the service Uber Rush which was however shut down last year.

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The company’s growth has been edgy since it becoming public in May. They experienced layoffs, collapsing share prices and departures of high-level executives including board members. Uber Eats, which has aided better growth in revenue, is now to be capitalized after they acquire Cornershop. In an effort to maintain its growth, Uber had to face a loss in millions over expansion and subsidization.

Cornershop is yet to arrive in US. It is chiefly Latin-American based currently servicing in Chile, Peru,Mexico in addition to Toronto, Canada. Oskar Hjertonsson, CEO of Cornershop and Khosrowshahi have both stated their plans in making the service of grocery delivery available to millions of customers through the Uber app.

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In a statement by Hjertonsson, he reports that they started Cornershop in 2015 adhering to the market in Latin America and are excited to associate with Uber to carry on the mission ahead. He claims Uber as a perfect partner in their venture to provide unique essence of on-demand groceries with retail partners throughout the countries in the world.

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