LatamList – COFECE (Federal Economic Competition Commission) has not yet approved Uber’s acquisition of Cornershop in Mexico, just over a year after the transaction was announced. The Commission said that the transaction will negatively impact the e-commerce market in the country.
According to COFECE, the acquisition of Cornershop by Uber would result in a concentration of competition in the market, thus negatively impacting the wider ecosystem. The Commission has taken a long time to reach its decision due to the complex nature of the issue and the impact of the COVID-19 crisis.
Uber criticized the delay in an interview with Expansión;
“The delay on the ground could threaten startups that are looking for an opportunity in the country. It also sends a negative signal to foreign investment to undermine business confidence and the implementation of investment plans,” said Uber.
The COVID-19 pandemic created a sudden demand for delivery services, both for food and supermarket supplies. Startups such as Rappi, Jüsto, and Cornershop all experienced increased sales, and the need for efficient delivery and technology will only continue to grow.
Other Latin American markets have already approved the transaction, as well as the United States and Canada. The company expects to reach a resolution in Mexico before the end of 2020.
Read more on Expansión.