Drizly, on the 2nd of february 2021, announced that they have reached an agreement for Uber to acquire the platform for approximately $1.1 billion in stock and cash. The deal is expected to close in the first half of the year.
Founded in 2012, Boston-based Drizly is an on-demand marketplace for alcohol delivery in the United States. The service has experienced a steady roll out in markets across the U.S. Though local liquor laws have offered something of a hurdle for expansion. Last month, it added Atlanta to the list, teaming up with a dozen or so local markets and liquor stores to expand delivery.
For those who don’t follow Uber’s every move, here’s a quick recap. Since early 2020, Uber has offloaded most of its businesses, including shared scooter and bike unit Jump, self-driving subsidiary Uber Advanced Technologies Group and the air taxi moonshot Uber Elevate. It also sold a $500 million stake in its Uber Freight spinoff. Meanwhile, it acquired on-demand delivery app Postmates and now Drizly.
Drizly teams with local merchants in the markets it services. The company says its services reach more than 1,400 cities in North America at last count. No doubt pandemic-related shutdowns have also gone a ways toward expanding the appeal of alcohol delivery.
Drizly plans to innovate and expand independently in its fast-growing and competitive sector, while also gaining access to the advanced mobile marketplace technologies of the world’s largest food delivery and ridesharing platform.
Merchants on Drizly will be able to benefit from Uber’s best-in-class routing technology and significant consumer base. Delivery drivers will have even more ways to earn. And Uber’s rewards and subscription programs will be able to deliver even greater value to consumers with new benefits and perks on Drizly.
Uber’s CEO Dara Khosrowshahi said, “Wherever you want to go and whatever you need to get, our goal at Uber is to make people’s lives a little bit easier. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol. Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year. By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead.”.
What do you think about Drizly’s decision? Excited for what’s about to come after this? Let me know your thoughts in the comments below