Netease Technologies News on October 11, in order to promote the latest strategy of diversification of income sources, Ubuntu is acquiring a majority stake in Cornershop, an online grocery express service company in Latin America.
It is reported that the transaction is expected to be completed by early 2020. Cornershops current leadership will continue to operate the company and report to the board of directors, which holds the majority of board seats. It is said that at present, cornershop has branches in Chile, Mexico, Peru and Toronto.
The deal is expected to help Youbu increase its revenue in Latin America. From the second quarter of 2018 to 2019, Youbos income in Latin America declined by 24%, while that in other regions increased. Ubuntu is differentiating itself from its competitors through its business network. In addition to carpooling services, Ubuntu has also added meal delivery and freight services.
Ubuntus profitability is still questioned by investors and analysts. In last quarters earnings report, Youbo lost more than expected and its revenue was lower than expected. Over the past three months, Ubuntus share price has fallen by more than 34% and its market value is now $49 billion, down sharply from its pre-IPO valuation of $76 billion in May. (passer by)
Source: Liable Editor of Netease Science and Technology Report: Qiao Junyi_NBJ11279