Uber launches grocery delivery

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Uber is launching a grocery service later this month.

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The ride-sharing app will debut the service in several Canadian and Latin American cities, and in the U.S. later this month, the company announced Tuesday.

Uber will launch grocery delivery in U.S. (iStock). 

Uber partnered with Cornershop, a Chilean online grocery store provider that Uber has held a majority stake in since October. Consumers will be able to order grocery items from local stores via the Uber Eats app in nearly a dozen Brazilian cities like Rio de Janeiro and Sao Paulo; Bogota, Colombia; and Lima, Peru, among others.

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Uber says the partnership will deliver groceries to millions of customers.

Uber experimented with delivery with more than 9,500 merchants in more than 30 countries on Uber Eats and has seen a 176 percent increase in grocery orders since February.

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The news follows Uber confirming Monday it was acquiring food delivery company Postmates in a $2.65 billion all-stock deal competing with the likes of DoorDash, which commands around 37 percent of the food delivery market in the U.S.

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Uber has bolstered its food delivery business during the coronavirus pandemic with fewer people relying on its ride-share business during stay-at-home orders and many companies pivoting to remote-only work. Rides for Uber declined 3 percent in the first quarter compared with previous years while its food delivery service UberEats surged 54 percent during the same time.

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The Associated Press contributed to this report. 

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