Uber to buy alcohol delivery giant Drizly for $1.1bn

Uber is set to acquire on-demand alcohol delivery giant Drizly in a deal worth over a billion as it seeks to cash in on the home-delivery boom.

Drizly, which delivers beer, wine and spirits to around 1400 cities across the US, will now become a wholly owned subsidiary of Uber.

Uber has said it plans to integrate Drizly’s service into its Uber Eats infrastructure, while also keeping the Drizly app as a standalone service.

The move comes after a year of staggering growth for Uber Eats, which overtook its ride hailing service for the first time in the second quarter of the year.

While rivals like Deliveroo, which is now partly owned by Amazon, have dominated the market in the UK, Uber Eats has fought to expand in other markets.

READ MORE: Iceland expands Uber Eats partnership offering 20-minute delivery on hundreds of items

In July, Uber agreed to acquire rival delivery firm Postmates for $2.65 billion just weeks after its planned takeover of Grubhub fell through.

Drizly’s chief executive Cory Rellas is understood to be joining Uber and will continue working to expanding the service.

“Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 per cent year-over-year,” Uber’s chief executive Dara Khosrowshahi said.

In the UK Uber Eats has signed a raft of partnerships with supermarkets including Iceland, Asda, Sainsbury, Wine Rack and Bargain Booze since the start of the pandemic, offering each a rapid and inexpensive way to grow their delivery arms rapidly.

Click here to sign up to Charged’s free daily email newsletter



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.