Uber is buying a majority ownership stake of Cornershop, an online grocery delivery business serving Latin America in the latest step to diversify its revenue stream.
The deal is expected to close in early 2020, according to a press release, with the current leadership at Cornershop continuing to lead the business and reporting to a board with majority Uber representation. Cornershop currently operates 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 second quarter of 2018 and 2019 while revenue from its other regional segments increased. Uber has differentiated itself from rival Lyft with its sprawling business, which includes meal delivery and freight services in addition to ridesharing.
Uber still faces questions from investors and analysts about its ability to turn a profit. In its last quarterly earnings report, Uber saw greater losses and lower revenue than expected. Its stock has slid more than 34% over the last three months, bringing its market cap to $49 billion, a steep decline from its last private valuation of $76 billion ahead of its May IPO.