After deciding to acquire about half of the company stake two years ago, Uber has decided to fully acquire Cornershop, an on-demand grocery delivery service started in Latin America in 2015.
In May 2020, Cornershop entered the US market, beginning with operations in Dallas and Miami. Cornershop is now available in Miami, NYC, Dallas, Washington DC, North Jersey, New Orleans, Houston, Austin, Orlando, Tampa and Jacksonville with plans to expand to other major metros across the US soon.
The cost of obtaining full ownership of Cornershop is going to be in exchange for 29 million shares. The transaction is expected to be completed in July 2021.
It’s likely that Uber will use this acquisition to continue beefing up its delivery services and expand grocery services to more markets within the U.S. This acquisition is on top of acquiring Postmates almost a year ago and Drizly in February.
Our Take
This is a good thing for gig workers since the more competition the better. According to our latest Uber driver survey, over 50% of gig workers are driving for more than one app these days. So it’s no surprise that drivers are constantly looking for a new platform that offers better pay with the same flexibility they get from Uber, Lyft and other food delivery companies.
So, in that respect, having Cornershop more readily available in the United States could prove helpful to drivers searching for other means of maximizing their earnings. And what we’ve typically seen with new platforms is that they pay drivers very well at the beginning of their lifecycles and when they’re launching in new cities in order to build up the supply side of the market. So if you’re in a current Cornershop market above, definitely consider checking them out. And if not, keep an eye out for them coming to a city near you.
During the pandemic, many drivers have switched over to Uber and Lyft to grocery delivery for several reasons. Tips tend to be a lot better with grocery delivery and it’s a more active job with way less customer interaction. So if you’re looking to get a little exercise and don’t want to deal with riders who puke in your backseat, delivering groceries for Cornershop may be worth your while. Another benefit that drivers like is that there are no vehicle requirements like with Uber and Lyft and you can even deliver with a friend, family member, spouse, etc. Which makes shopping, loading/unloading, etc all that much easier.
If you’re interested in delivering for Cornershop, you can sign up for Cornershop here! Or, check out this review we did and let us know what you think in the comments below.
-Paula @ RSG
