Uber and Cornershop: An Acquisition in the Multi-sided Platform Space

In mid-2020, Uber Technologies, Inc. (Uber) acquired Latin American-based mobile application Cornershop, which delivered online grocery purchases to the consumer’s home. The operation involved technology firms based on multisided platforms. Uber, which focused on the intermediation of passenger transport, had expanded to businesses such Uber Eats for the delivery of restaurant meals, while Cornershop’s focus was the purchase and delivery of supermarket products. Recently, Walmart had attempted to acquire Cornershop, but Mexico’s antitrust authorities would not authorize the acquisition. Uber’s acquisition of Cornershop involved important managerial challenges. What were the main sources of value? Should the two companies be managed separately or as joint units? Would Walmart have been a better fit for Cornershop? What was the best strategy to grow in this multisided business space?