Image credits: Cornershop
News Article

COFECE Approves Uber’s Cornershop Purchase

By Andrea Villar | Mon, 12/14/2020 - 10:41

Today, Mexico’s antitrust regulator, the Federal Commission of Economic Competition (COFECE), approved without conditions Uber’s majority acquisition of Cornershop Mexico. “Uber and Cornershop are committed to driving delivery services that support trade and local communities, which is even more important during uncertain scenarios, such as those we face today. We are excited to finally bring our teams together to continue to innovate, offering ever better products and services to trade partners, delivery partners, shoppers and consumers across the country,” said in a statement General Director of Uber Eats for Latin America, Eduardo Donnelly. 

Cornershop was born five years ago with the goal of creating the best grocery delivery platform in Mexico, said Oskar Hjertonsson, Founder and CEO of Cornershop. "Today's announcement will help to boost that vision in Mexico,” he pointed out in a statement. “We already work together with Uber in several other countries, allowing consumers to access a wide variety of products, large supermarkets and local specialty shops. At the same time it provides an exceptional opportunity for shoppers and all our retail partners, large and small," he added. 

"Soon we can welcome back the whole team from Mexico, who since July has been operating without being able to communicate with the colleagues from the rest of Cornershop ...  They did a GIANT job with less resources these months,” Hjertonsson wrote this morning on his Twitter account. 

In early November, Uber urged the Mexican antitrust authorities to approve the acquisition,  arguing a negative impact on the entrepreneurial ecosystem and even Cornershop’s survival in the country. The ride-hailing company said back then a favorable resolution from COFECE would contribute to greater investment from the company. "This, in turn, will help to attract foreign capital, starting with Uber's strong investments in Mexico, which will boost our economy. Likewise, Uber and Cornershop’s merger will allow the expansion of the food purchase and delivery company and the generation of thousands of flexible self-employment opportunities", the company stated.

According to Uber, Cornershop Mexico will continue to operate independently until the acquisition is completed, which is expected to happen in the next few days. The app currently has presence in Chile, México, Brazil, Peru, Colombia, Costa Rica, the US and Canada.

Photo by:   Cornershop
Andrea Villar Andrea Villar Journalist and Industry Analyst