Why Uber Is Buying a Majority Stake in Online Grocer Cornershop

Uber's acquisition of Cornershop aims to expand its geographical reach and strengthen its market by adding grocery and food delivery services. This move is part of Uber's broader strategy to become an all-encompassing service platform. Cornershop, a major delivery service in Mexico and Chile, faced regulatory challenges when Walmart attempted to acquire it. Uber's approach of buying a majority stake may avoid similar issues. The acquisition also supports Uber's international expansion into Peru and Canada. Despite the potential for increased profitability, Uber's share price remains below its IPO value.

What are the two main benefits Uber gains from acquiring Cornershop?

• Increased ride-sharing profits and reduced operational costs

• Additional service layers and reduced operational costs

• Geographical expansion and additional service layers

• Geographical expansion and increased ride-sharing profits

Why was Walmart unable to acquire Cornershop?

• Walmart faced regulatory opposition

• Cornershop was not interested in selling

• Cornershop preferred to remain independent

• Uber outbid Walmart

In which countries does Cornershop have a significant presence?

• Mexico, Chile, Peru, and Canada

• Brazil, Argentina, Peru, and Canada

• Chile, Brazil, Canada, and Argentina

• Mexico, Argentina, Peru, and Brazil

What is Uber's broader strategy with the acquisition of Cornershop?

• To focus solely on food delivery

• To become a comprehensive service provider

• To become a leading ride-sharing company

• To expand only in North America

How has Uber's share price performed since its IPO in 2019?

• It has increased by 33%

• It has remained stable

• It is trading at about 33% off its IPO price

• It has doubled in value