- Uber Technologies Inc (NYSE:UBER) inked an agreement with Cornershop Global LLC’s minority shareholders to acquire its remaining 47% stake in online grocery provider Cornershop for 29 million Uber shares.
- The purchase price is worth $1.4 billion based on Uber’s Friday closing price of $49.7.
- Cornershop will become Uber’s wholly-owned subsidiary under the arrangement.
- Uber had acquired a majority stake in Cornershop in Oct. 2019.
- Uber bolstered its food delivery business with the $2.65 billion acquisition of Postmates in 2020, and adding groceries and other goods, including alcohol, by buying Drizly and its recent alliance with GoPuff, Bloomberg reported.
- The acquisitions aimed to diversify its revenue stream when the pandemic hit its ride-hailing business. Walmart Inc (NYSE:WMT) and Instacart Inc presently dominate the budding grocery delivery market.
- In July, Instacart prosecuted Cornershop for allegedly stealing the company’s intellectual property, including listings of inventory at grocery stores.
- UBER held $5.7 billion in cash and equivalents as of Mar. 31, 2021.
- Price action: UBER shares traded lower by 2.70% at $48.36 on the last check Monday.
Northland Capital Markets Assumes PHX Minerals at Outperform, Announces Price Target of $6
Northland Capital Markets analyst Donovan Schafer assumes PHX Minerals (NYSE:PHX) with a Outperform rating and announces Price Target of $6.
