Uber made a rare acquisition yesterday, buying out grocery delivery player Cornershop, throwing its hat in the $110 billion online grocery delivery market.
For the last 2 years, a cash-bleeding Uber was pulling out of a million of its initiatives, cleaning up its balance sheet under immense shareholder pressure. However, CEO Dara Khosrowshahi was all the time quietly planting seeds into potential opportunities where he had interest, but didn’t have the $$ to go aggressively, yet.
Cornershop was one such seed (planted in 2019), and yesterday, as the ride-hailing business finally regains its footing, management fully acquired the rest of the business.
Deal value is unknown, but we’re guessing somewhere around $300M-$400M (given Walmart had tried buying the company for $225 million a while back). Cornershop operates across 8 nations in the American continent.
Bottomline — Cornershop joins the boys from Postmates who were brought in last year at Uber HQ, who together will lead all non-ride hailing franchises — now bringing in about $3 billion in revenues a year.
Big picture — markets are starting to like the prospects of the “post pandemic” Uber, and stock has already 2x’ed from the bottoms.