Uber Technologies Inc. announced Tuesday it is acquiring Drizly, the nation’s leading on-demand alcohol-delivery service, for $1.1 billion.
According to the ride-share behemoth, Drizly marketplace will be integrated with the Uber Eats app, but the standalone Drizly app will remain as well.
JUST IN: Uber has announced it has acquired alcohol delivery company, @Drizly. The deal is valued at $1.1 billion.
— Darren Rovell (@darrenrovell) February 2, 2021
First backed by $13 million at a valuation of $40 million in 2015, the changing habits driven by Covid clearly hastened this sale and made Drizly more valuable. pic.twitter.com/9AVaS4aavO
Founded in 2012, Drizly is currently available in 1,400 cities and generated 300% growth in the past year, CNBC reported.
The announcement marks the largest deal to date in the U.S. online alcohol space, The Wall Street Journal reported, citing the Wine & Spirits Wholesalers of America, a trade group representing more than 350 distributors.
Uber also acquired food-delivery rival Postmates Inc. in a 2020 stock deal valued at nearly $2.7 billion. Uber’s food-delivery segment now trails only DoorDash Inc. in U.S. market share, the Journal reported.
“During this time our delivery business has been growing at extraordinary rates,” Uber CEO Dara Khosrowshahi told CNBC, noting the Uber Eats segment has bolstered Uber’s primary ride-hailing segment as the novel coronavirus pandemic has left many customers homebound.
Drizly a very smart move from Uber. Food orders can be matched with the nearest Drizly-partnered liquor store, with drivers picking up a bottle of wine with dinner. Winning app biz is all about piling on as much as possible to each order.
— Dave Lee (@DaveLeeFT) February 2, 2021
Meanwhile, online alcohol sales are expected to capture 7% of total U.S. alcohol sales by 2024, compared with the 1% they represented in 2019, the Journal reported, citing industry tracker IWSR.
The Drizly deal is slated to close within the first half of 2021, CNBC reported.
More coronavirus pandemic coverage:
>> Coronavirus vaccines: CDC separates myths from facts
>> Coronavirus: Should we be wearing two masks when we go out in public?
>> Coronavirus: How long between exposure to the virus and the start of symptoms?
>> Wash your masks: How to clean a cloth face covering
>> Fact check: Will masks lower the oxygen level, raise the carbon dioxide in your blood?
>> How to not let coronavirus pandemic fatigue set in, battle back if it does
Cox Media Group
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/LW2VP2Y6PJDZPLDJCDBZRFVCAI.png)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/NZS3DHFYIBFCNMPEVK5ZZLQ6XE.jpg)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/NQCTWRA7OVFP5ABEQBTBAG2E3A.jpg)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/N7YMXJTJYJEFBCXSUI6KPLO7OM.png)
:quality(70)/d1hfln2sfez66z.cloudfront.net/04-19-2024/t_fc72695bddad400cbcdf60101dc0389b_name_file_960x540_1200_v3_1_.jpg)