Oct 12, 2019 - Technology

Uber rides into grocery delivery

Uber Eats sign on a door

Photo: Smith Collection/Gado/Getty Images

Uber has struck a deal to acquire a majority stake in grocery-deliver company Cornershop, as it tries to take a bigger bite out of the food retail market, the Wall Street Journal reports.

Why it matters: Uber is working to expand its business model beyond ride-hailing with its latest acquisition alongside its food-delivery service Uber Eats, per WSJ.

The big picture: Other companies such as DoorDash and Postmates are also trying to expand their delivery options. It's proving difficult for businesses to balance customer cost against making a profit in the food retail space.

  • Delivering groceries can help increase sales, but it's costly to implement and profits have been less than noteworthy so far this year, the Wall Street Journal notes.

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