Transport giant Uber buys alcohol delivery startup Drizly for $1.1 billion
Riddhi Jain,
5 years ago
4 min read
Table of Contents
Introduction
Tech giant Uber has announced that it will be acquiring Drizzly, an alcohol delivery startup, for $1.1 billion in cash and stock. As an outcome of this deal, which isn’t complete yet, Drizly will be integrated into the food delivery app of Uber. However, Drizzly will also continue remaining a standalone app. This move will give Uber a wider array for its growing food delivery service, which has helped the firm cope with a steep decline in its ride-sharing business.
Subject to regulatory approval, the tech giant says 90% of this transaction will be in shares while the rest in cash. The acquisition is expected to close by the end of 2021 first half.
About Drizly – A booze delivery startup
Drizly is a leading on-demand alcohol delivery marketplace available in the United States. At present, Drizly works with hundreds of local merchants to provide its customers with a broad range of wine, beer and spirits and that too at transparent and competitive rates.
It is the largest e-commerce alcohol marketplace in North America that partners with retailers to bring their inventory online, help them reach a new and wider customer base, help them tap into new key markets, provide them with customer insights and ultimately diversify their business. Drizly operates in about 1400 municipalities in the United States along with 1 Canadian province.
Commonly referred to as the ‘Amazon for liquor’, Drizly was founded in the year 2012 and is headquartered in Boston. The company was co-founded by Justin Robinson, Nick Rellas and Spencer Frazier and the current Chief Executive Officer of the alcohol-delivery firm is Cory Rellas.
Mr. Cory Rellas, in a statement regarding the news of its acquisition, said that not just consumers but merchants on Drizly would also be benefited from the world class routing technology of Uber. Rellas added that they’re thrilled to be a part of the ride-hailing service giant Uber whose platform will boost Drizly on its mission “to be there when it matters”.
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More about Uber acquiring Drizly
Dara Khosrowshahi, Uber CEO said that wherever one wishes to go and whatever one needs to get, Uber’s goal is to make the lives of people a little bit easier. Which is why Uber has been branching into new diverse categories like prescriptions, groceries and now, alcohol.
The team of Uber has built Drizly into an incredible success story with a profitably growing gross bookings of over 300% year-over-year, said Khosrowshahi. By integrating Drizly into the family of Uber, the tech giant feels it can accelerate the growth trajectory by exposing Drizly to the customer base of Uber and expanding the geographic presence of Drizly into Uber’s global footprint in the coming years.
Conclusion
Uber’s acquisition of Drizly for $1.1 billion marks a significant step in the company’s expansion beyond ride-sharing services. This move not only strengthens Uber’s growing food delivery business but also taps into the fast-growing on-demand alcohol delivery market. By integrating Drizly’ s services into Uber’s platform, Uber will broaden its range of offerings and enhance its competitive edge in the rapidly evolving digital marketplace. As Drizly continues to operate as a standalone app, Uber’s global reach and technology will help accelerate its growth, ultimately benefiting both consumers and merchants in the alcohol delivery ecosystem.
FAQs
- Why is Uber acquiring Drizly?
- Uber is acquiring Drizly to expand its services into the alcohol delivery space, complementing its food delivery platform and compensating for the decline in its ride-sharing business. The acquisition also allows Uber to offer a broader range of services to its customers.
- How much is Uber paying for Drizly?
- Uber is acquiring Drizly for $1.1 billion, with 90% of the transaction being paid in shares and the remaining 10% in cash.
- Will Drizly continue as a separate app after the acquisition?
- Yes, Drizly will continue to operate as a standalone app, even though it will be integrated into Uber’s food delivery service.
- What is Drizly?
- Drizly is an on-demand alcohol delivery service that partners with local retailers to provide wine, beer, and spirits to customers in a variety of U.S. municipalities and one Canadian province.
- When is the acquisition expected to close?
- The acquisition is subject to regulatory approval and is expected to close by the first half of 2021.
- How will this acquisition benefit Drizly’s customers and merchants?
- Drizly’s customers will benefit from Uber’s world-class routing technology, while merchants will gain access to Uber’s large customer base and global reach, expanding their market presence.
