Uber launches grocery delivery in Latin America, Canada with U.S. to follow

(Reuters) – Uber Technologies Inc (UBER.N) on Tuesday further expanded delivery offerings, launching an app-based grocery service in several Latin American and Canadian cities, with the United States to follow later this month.

The company’s latest foray into the delivery space is in partnership with Cornershop, a Chilean online grocery provider that Uber has held a majority stake in since October.

Customers in Canada’s Montreal and Toronto, eleven Brazilian cities, including Rio de Janeiro and Sao Paulo, four Chilean cities, Colombia’s Bogota and Peru’s Lima will be able to order groceries from local stores and chains through the Uber Eats app.

In Canada, groceries can be ordered from large chains Walmart Inc (WMT.N) and Metro Inc (MRU.TO).

A launch in U.S. cities is expected later in July, beginning with regional merchants in Miami and Dallas, an Uber spokeswoman said.

Uber said it had some 9,500 active merchants, with grocery-convenience orders increasing by more than 176% since February across the Uber platform.

Uber’s grocery delivery push comes at a time when its core ride-hailing business is under pressure around the globe with coronavirus lockdown orders keeping many passengers at home.

At the same time, Uber’s restaurant delivery business Eats has seen growing demand during the pandemic, with second-quarter food delivery orders up more than 100%.

Uber on Monday said it would acquire U.S. food delivery rival Postmates for $2.65 billion to significantly increase the business of supplying everyday goods, including groceries.