Uber is securing a majority ownership stake of Cornershop, an online grocery delivery business serving Latin America in the latest path to diversify its revenue stream.
The deal is expected to close in early 2020, according to a press release, with the going round leadership at Cornershop continuing to lead the business and reporting to a board with majority Uber representation. Cornershop currently goes in Chile, Mexico, Peru and Toronto, according to the release.
The deal could help strengthen Uber’s revenue in Latin America, which saw a 24% dip between the go along with quarter of 2018 and 2019 while revenue from its other regional segments increased. Uber has differentiated itself from contender Lyft with its sprawling business, which includes meal delivery and freight services in addition to ridesharing.
Uber tranquil faces questions from investors and analysts about its ability to turn a profit. In its last quarterly earnings reveal, Uber saw greater losses and lower revenue than expected. Its stock has slid more than 34% terminated the last three months, bringing its market cap to $49 billion, a steep decline from its last private valuation of $76 billion to the fore of its May IPO.
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