Uber Acquires Alcohol Delivery App Drizly for $1.1 Billion USD
The deal is expected to finalize before the first half of 2021.
On February 2, CNBC reports that Uber has announced it will be acquiring the popular alcohol delivery service app Drizly for $1.1 billion USD in stock and cash.
The acquisition of Drizly will see its marketplace seamlessly integrated into the tech giant’s Uber Eats app. Though this is the case, Drizly will still keep its standalone app.
Uber CEO Dara Khosrowshahi explains to CNBC how the pandemic has affected their business, “During this time our delivery business has been growing at an extraordinary rate.” Drizly has also seen a 300% growth in the past year.
Drizly, only founded in 2012, has quickly become the “leading on-demand alcohol delivery service” in America. It is currently available in 1,400 cities nationwide, and with the help of Uber is likely to expand to more locations soon. Drizly is also expected to drive more users to Uber’s app. Amidst the pandemic, Uber Eats has been a key segment to Uber’s business.
Following the announcement, Uber anticipates that the deal will close by mid-year. Recently, the company has been focusing on acquiring other food delivery services. After failed talks to purchase GrubHub, Uber officially bought Postmates last July.
As for its recent ventures into the transportation segments, Uber has offloaded its electric scooter and bike business, Jump, to Lime. The company also sold Advanced Technologies, its self-driving unit, to competitor Aurora Innovation. Uber has also recently reported it is in talks to sell Uber Elevate, its flying taxi business.
Uber stock was up more than eight percent since the announcement.
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