Uber turns to alcohol
Acquires Drizly e-commerce for $ 1.1 billion
Uber Technologies has reached an agreement to acquire Drizly, a US alcohol ecommerce platform, for approximately $1.1 billion. Founded in 2012, Drizly is an on-demand alcohol marketplace that currently operates a delivery service in more than 1,400 cities across a majority of US states. The company partners with thousands of local merchants to provide customers with a variety of beer, wine and spirits. Upon completion of the transaction, Drizly will become a wholly-owned subsidiary of Uber and its marketplace will eventually be integrated within the Uber Eats app, while also maintaining a separate Drizly app.
The deal is the latest move by Uber as it looks to expand its platform and follows its acquisitions of food delivery service Postmates and grocery delivery service Cornershop. “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”, said Uber CEO Dara Khosrowshahi.
As a result of the deal, Drizly plans to expand in the fast-growing sector, while gaining access to the advanced mobile marketplace technologies of Uber. Following the transaction, merchants on Drizly will be able to benefit from Uber’s technology and consumer base, while delivery drivers will reportedly have more ways to earn. Drizly will also adopt Uber’s rewards and subscription programmes offering greater value to consumers. Drizly co-founder and CEO Cory Rellas, said: “Drizly has spent the last eight years building the infrastructure, technology, and partnerships to bring the consumer a shopping experience they deserve. It’s a proud day for the Drizly team as we recognise what we’ve accomplished to date but also with the humility that much remains to be done to fulfil our vision. With this in mind, we are thrilled to join a world-class Uber team whose platform will accelerate Drizly on its mission to be there when it matters, committed to life’s moments and the people who create them”.
Khosrowshahi added: “Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300% 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”. The deal, which is subject to regulatory approval and customary closing conditions, will be paid in both stock and cash and is expected to close within the first half of 2021.
EFA News - European Food Agency