Uber buys Cornershop to boost Latin American grocery delivery

Founded in 2015 in Santiago, Cornershop distinguished itself by formally employing its shoppers, offering fixed salaries, benefits, and union rights—uncommon in the gig economy. By 2020, it had become Chile’s leading online grocery platform, but faced mounting competition from rivals like Rappi and PedidosYa and pressure to scale quickly.

After Uber acquired a majority stake in July 2020 and full ownership in July 2021, Cornershop’s technology was integrated with Uber Eats, enabling joint promotions and dark‑store partnerships with retailers such as Cencosud. While Uber aimed to expand into other merchant categories, the shift led to changes in worker conditions, with shoppers reporting reduced benefits and weaker communication with management.

Uber gained a foothold in Latin American online grocery, integrating Cornershop with Uber Eats to expand its convenience platform.

Uber wanted to diversify beyond ride‑hailing and capture growth in Latin America’s fast‑growing online grocery market.

Cornershop’s established user base and logistics network offered Uber an immediate platform to scale grocery delivery without building from scratch.

The acquisition allowed Uber to leverage its technological resources to enhance Cornershop’s app and explore synergies with its rideshare and food‑delivery services.

Acquiring a local startup can speed market entry, but success depends on aligning operations and culture with the parent company’s ecosystem.

Post‑acquisition, Cornershop operated as part of Uber’s convenience division, with its grocery service accessible via the Uber app. The company pursued dark‑store projects to cut delivery times and explored expanding into categories like clothing. However, many shoppers reported deteriorating working conditions, including loss of fixed salaries, reduced benefits, and limited access to management, reflecting tensions between Uber’s integration goals and labor expectations.