Uber Buys Alcohol Delivery Service Drizly For $1.1 Billion
US-based alcohol-delivery service Drizly is set to become part of the Uber Eats app after being sold to the company for $1.1 billion in stock and cash.
After making a name for itself as the transporter of both people and food, Uber will take responsibility for a new form of precious cargo when the deal with Drizly closes, which is expected to be in the first half of 2021.
The company announced the acquisition on Tuesday, February 1, explaining it will keep the existing Drizly app live as well as incorporating the business into its own delivery app.
After being founded in 2012, Drizly went on to become the leading on-demand alcohol delivery service in the US, CNBC reports. It is available in 1,400 US cities including New York City, Los Angeles, Miami and Washington DC, as well as Alberta, Canada.
Uber’s acquisition of the popular company will allow Uber to offer beer, wine and spirits in the majority of US states in addition to the food shopping, package and prescription delivery it recently launched in some regions. It could also help to drive people to use Uber’s app more often.
Uber Eats has recorded great success amid the coronavirus pandemic, when people were encouraged to stay at home and thus turned to delivery services to bring them food.
Speaking to CNBC on Tuesday, Uber CEO Dara Khosrowshahi said the business has been growing ‘at extraordinary rates’. Similarly, Drizly said it had more than 300% growth in the past year.
Following the news of the acquisition, the Uber Eats share price went up 6.5% to $56.20.
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