Uber to shutter Drizly liquor delivery service
Uber is pulling the plug on a Boston-based alcohol delivery platform it purchased for $1.1 billion.
In an email to Chain Store Age, Pierre Dimitri Gore-Coty, senior VP of delivery, Uber, confirmed reports that Uber intends to wind down operations of Drizly, which it acquired in October 2021.
“After three years of Drizly operating independently within the Uber family, we’ve decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything - from food to groceries to alcohol - all on a single app,” Gore-Coty said in the email. “We’re grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer.”
In the email, Uber said it will shut down the Drizly business and brand at the end of March 2024. According to Uber, consumers are increasingly preferring to get multiple types of products delivered using the same app, and its Uber Eats on-demand food and beverage delivery app is focused on more use cases and selection within a single app.
Uber also said global business in the liquor deliver category on Uber Eats has more than doubled in the past year and that the majority of Drizly customers also have Uber accounts. The company says it will continue to offer and build out its alcohol delivery offering, currently available across 35 US states and more than 25 countries, utilizing learnings from Drizly.
Uber and Drizly – a brief history
Uber’s $1.1 billion purchase transaction of Drizly included a purchase consideration of approximately $1.1 billion, consisting of close to 19 million newly issued shares of Uber common stock, plus cash. Drizly became a wholly-owned subsidiary of Uber.
Drizly’s marketplace was featured within the Uber Eats app, while also maintaining a separate Drizly app and web experience. At the time the merger was initially announced, Drizly said it plansnedto innovate and expand independently in the on-demand liquor delivery sector, while also gaining access to the advanced mobile marketplace technologies of Uber.
Retailers on Drizly were provided access to Uber’s routing technology and consumer base, and Uber integrated its rewards and subscription programs with benefits and perks on Drizly.
In early 2023, Drizly (operating as an Uber subsidiary) collaborated to bring the full Gopuff assortment of beer, wine and spirits to Drizly's beverage alcohol e-commerce shop, while also expanding the number of Gopufff-owned Gopuff Liquor & More, BevMo!, and Liquor Barn stores offering online purchase and delivery via the Drizly platform.
There has been no public statement yet on whether this partnership will continue with Uber Eats and Gopuff after March 2024.