Rumors that Walmart would acquire Chilean-Mexican last-mile delivery startup, Cornershop, started this June 2018. Today, La Tercera announced that Walmart officially closed that deal for total control of Cornershop for US$225M.
This acquisition marks an inflection point in Latin America’s fast-growing and increasingly competitive e-commerce industry, as corporations like Falabella and Walmart race to compete against new players like AliExpress and Amazon. Cornershop will operate as a subsidiary of Walmart in Chile, allowing Walmart to deliver goods within 60-90 minutes and improve their e-commerce services.
“Cornershop has grown rapidly in Chile and Mexico, and we know they are continuing to innovate. That’s why we are thrilled to strengthen our relationship with them and help them extend their reach, all the while learning from them,” said Judith McKenna, President and CEO of Walmart International.
This acquisition is the second in a new pattern of international corporations purchasing e-commerce and delivery startups to help them compete against industry giants. In July 2018, retail store Falabella acquired e-commerce platform Linio for US$138M.
Walmart is confident the acquisition will help them provide better service to their customers and take a strong stand in an increasingly digital shopping experience in Latin America.
Read more about the acquisition on La Tercera.