Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
Uber is acquiring the remaining 47% stake in the food delivery start-up Cornershop in an all-stock transaction, the company announced on Monday. The acquisition shows how Uber is investing more outside of its core ride-hailing business, which so far has not proven profitable.
Uber stock closed 3.18% on Monday.
The deal comes almost two years after Uber bought a majority stake in Cornershop for an undisclosed amount. Cornershop currently operates in the United States, Peru, Brazil, Colombia, and Canada.
“Uber already owns ~ 50% of Cornershop and we’ve seen how working together can produce great results, such as our joint launch of Brazil in 2020 where we became a leader in no time. But to really realize the full potential of this partnership, we have to act as one company, “said Oskar Hjertonsson, founder and CEO of Cornershop, in a tweet.
The deal is expected to close in July.
Uber has focused its acquisition efforts on its Eats segment during the coronavirus pandemic. Uber acquired Postmates last July after failing to purchase the GrubHub food delivery service. In February, the company also acquired Drizly alcohol delivery service.
Uber has outsourced some of its more expensive transportation segments. The company transferred its Jump electric bike and scooter business to Lime last year. Uber also sold its Advanced Technologies Group self-driving unit to its start-up competitor Aurora Innovation. It has also outsourced its air taxi business, Uber Elevate.
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