Chilean regulator approves Uber’s purchase of Cornershop grocery app

The Uber logo is displayed on a mobile phone in this picture illustration
FILE PHOTO: The Uber logo is displayed on a mobile phone in this picture illustration taken November 25, 2019. REUTERS/Hannah McKay/Illustration

May 29, 2020

By Fabian Cambero

SANTIAGO (Reuters) – Chile’s antitrust regulator said on Friday it had approved “without conditions” Uber’s purchase of Chilean online grocery provider Cornershop, clearing a key hurtle for the ride-hailing company as it seeks to expand into the delivery of groceries and other goods.

Uber said in late 2019 it would buy a majority stake in the Chile-based Cornershop, but the deal was subject to the approval of regulators in Chile and Mexico.

“The operation does not substantially reduce competition and, consequently, does not negatively affect … access, price, quantity or quality,” antitrust regulator FNE said in a statement on its decision.

The deal would see Uber expand Santiago-based Cornershop, which now operates in Mexico, Chile, Canada and Peru into “many more countries around the world,” Cornershop said in October.

Cornershop has rapidly gained popularity in Latin America, where its uniformed staff are a common sight in the aisles of grocery stores hunting down orders for customers, before delivering them in branded, recyclable bags.

(Reporting by Fabian Cambero; Writing by Dave Sherwood; Editing by Daniel Wallis)